Announces Increase in Monthly Dividend and
Introduces Guidance for 2020
EPR Properties (NYSE:EPR) today announced operating results for
the fourth quarter and year ended December 31, 2019 (dollars in
millions, except per share data):
Three Months Ended December
31,
Year Ended December
31,
2019
2018
2019
2018
Total revenue from continuing operations
(1)
$
170.3
$
150.9
$
652.0
$
639.9
Net income available to common
shareholders
30.3
48.0
178.1
242.8
Net income available to common
shareholders per diluted common share
0.39
0.65
2.32
3.27
Funds From Operations as adjusted (FFOAA)
(a non-GAAP financial measure)
99.7
105.1
423.2
460.4
FFOAA per diluted common share (a non-GAAP
financial measure)
1.26
1.39
5.44
6.10
(1) Total revenue from continuing operations for the three
months and year ended December 31, 2018 included $4.0 million and
$71.3 million, respectively, in prepayment fees related to the
pay-off of non-Education mortgage notes.
Fourth Quarter Company Headlines
- Experiential focus announced in November in conjunction with
sale of public charter school portfolio
- Solid fourth quarter caps off another highly productive
year
- Guidance introduced for 2020; Significant capital redeployment
anticipated
- Monthly dividend increase for common shares announced
CEO Comments
“We had a strong finish to a very productive year,” stated Greg
Silvers, President and CEO. “The sale of our public charter school
portfolio marked a milestone in refocusing our growth on
experiential real estate, which allows us to capitalize on both our
extensive history in this sector and the trend of increasing
consumer experiential spending. The ongoing durability in our
tenant industries offers earnings stability and substantial growth
opportunities, positioning us to continue building the premier
experiential real estate portfolio.”
Portfolio Update
As previously announced and further described below, during the
fourth quarter, the Company sold the largest portion of its
Education portfolio, public charter schools, and is now
strategically focused on investing in Experiential properties which
the Company believes is a highly enduring and growing sector of the
real estate industry. With this change, the Company now classifies
its Entertainment and Recreation portfolios as Experiential while
its remaining Education portfolio consists primarily of traditional
net leases providing additional geographic and operator diversity.
The Company's total investments (a non-GAAP financial measure) were
approximately $6.7 billion at December 31, 2019 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 December 31, 2019:
- 179 theatre properties;
- 55 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 December 31, 2019, the Company's owned Experiential
portfolio consisted of approximately 19.2 million square feet,
which was 99.1% leased and included $36.8 million in construction
in progress and $24.6 million in undeveloped land inventory.
The Company's Education portfolio consisted of the following
property types (owned or financed) at December 31, 2019:
- 72 early childhood education center properties; and
- 16 private school properties.
As of December 31, 2019, 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 21.1 million square
feet and was 99.1% leased.
Investment Update
The Company's investment spending for the three months ended
December 31, 2019 totaled $110.0 million (bringing the full year
2019 investment spending to $794.7 million), and included the
following:
- Experiential investment spending during the three months ended
December 31, 2019 totaled $104.7 million, including the acquisition
of three theatre properties for approximately $48.6 million, one
mortgage note secured by a ski resort totaling $37.0 million and
spending on build-to-suit development and redevelopment
projects.
- Education investment spending during the three months ended
December 31, 2019 totaled $5.3 million, including spending on
build-to-suit development and redevelopment of early childhood
education centers.
Capital Recycling
During the quarter, the Company completed the sale of its public
charter school portfolio through the following transactions:
- On November 22, 2019, the Company sold 47 public charter school
related assets, for net proceeds of approximately $449.6 million.
The Company recognized an impairment on this portfolio sale of
$21.4 million that included the write-off of non-cash straight-line
rent and effective interest receivables totaling $24.8
million.
- During the fourth quarter, the Company sold three other public
charter schools, one of which was pursuant to a tenant purchase
option, for net proceeds totaling $17.9 million and recognized a
combined gain of $1.9 million.
- On November 2, 2019, the Company received $9.8 million in
proceeds representing prepayment in full on a mortgage note
receivable that was secured by one public charter school
property.
Due to the Company's disposition of its remaining public charter
school portfolio in 2019, the operating results of all the public
charter schools that were sold during 2019 have been classified
within discontinued operations in the Company's consolidated
statements of income for all periods.
Additionally, during the fourth quarter, the Company completed
the sale of an attraction property and received an $11.0 million
cash payment and provided seller mortgage financing of $27.4
million which matures in five years. Lastly, the Company sold two
land parcels for net proceeds of $4.4 million. The Company
recognized a combined gain on these sales of $3.7 million.
Disposition proceeds (excluding seller mortgage financing) and
mortgage note pay-offs (excluding principal amortization and
including prepayment fees) totaled $492.7 million and $882.9
million for the three months and year ended December 31, 2019,
respectively.
Balance Sheet Update
The Company had a net debt to adjusted EBITDA ratio (a non-GAAP
financial measure) of 4.7x at December 31, 2019. The Company had
$528.8 million of unrestricted cash on hand and no outstanding
balance under its $1.0 billion unsecured revolving credit facility
at December 31, 2019.
During the quarter, the Company issued 223 thousand common
shares under its Dividend Reinvestment and Direct Share Purchase
Plan for net proceeds of $17.0 million. The year to date issuances
under this plan total 4.0 million common shares for net proceeds of
$305.9 million.
Dividend Information
The Company's Board of Trustees declared its monthly cash
dividend to common shareholders of $0.3825 per share payable April
15, 2020 to shareholders of record as of March 31, 2020. This
dividend represents an annualized dividend of $4.59 per common
share, an increase of 2% over the prior year and the Company's
tenth consecutive year with a dividend increase.
The Company's Board of Trustees 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, payable April 15,
2020 to shareholders of record as of March 31, 2020.
2020 Guidance
(Dollars in millions, except per share
data):
Measure
2020 Guidance
Net income available to common
shareholders per diluted common share
$
2.92
to
$
3.12
FFOAA per diluted common share
$
5.19
to
$
5.39
Investment spending
$
1,600
to
$
1,800
Disposition proceeds
$
50
to
$
100
The Company is introducing its 2020 guidance for FFOAA per
diluted common share of $5.19 to $5.39, the midpoint of which
represents approximately 4% growth over 2019 excluding termination
and prepayment fees that related primarily to the Company's public
charter school portfolio sold in 2019.
The 2020 guidance for FFOAA per diluted share is based on a FFO
per diluted common share range of $5.17 to $5.37 adjusted for
transaction costs and deferred income tax expense. FFO per diluted
common share for 2020 is based on a net income available to common
shareholders per diluted common share range of $2.92 to $3.12 less
estimated gain on sale of real estate of $0.03 and the impact of
Series C and Series E dilution of $0.06, plus estimated real estate
depreciation of $2.31 and allocated share of joint venture
depreciation of $0.03 (in accordance with the NAREIT definition of
FFO).
The Company's guidance for 2020 includes an anticipated
investment of approximately $1.0 billion in a gaming venue. The
Company has entered into a non-binding term sheet with respect to
the investment, and made significant progress on the definitive
agreements, which the Company expects the parties to finalize and
execute in the coming weeks. The Company expects to close this
investment in the second quarter of 2020.
The Company expects to fund the anticipated gaming venue
investment, as well as the other investments included in the
investment spending guidance for 2020, with cash on hand or
borrowings under the Company's unsecured revolving credit facility,
as well as debt and equity financing alternatives. The availability
and terms of any such financing will depend upon market and other
conditions.
Additional earnings guidance detail can be found in the
Company's supplemental information package available in the
Investor Center on the Company's website located at
http://investors.eprkc.com/earnings-supplementals.
Conference Call Information
Management will host a conference call to discuss the Company's
financial results on February 25, 2020 at 8:30 a.m. Eastern
Daylight Time. The conference will be webcast and can be accessed
via the Earnings Call 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 7013678.
You may watch a replay of the webcast by visiting the Earnings
Call page at http://investors.eprkc.com/earnings-call.
Quarterly and Year-end Supplemental
The Company's supplemental information package for the fourth
quarter and year ended December 31, 2019 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 December
31,
Year Ended December
31,
2019
2018
2019
2018
Rental revenue
$
154,765
$
133,491
$
593,022
$
509,086
Other income
8,386
435
25,920
2,076
Mortgage and other financing income
7,195
16,991
33,027
128,759
Total revenue
170,346
150,917
651,969
639,921
Property operating expense
16,097
8,285
60,739
29,654
Other expense
10,173
325
29,667
443
General and administrative expense
10,831
12,165
46,371
48,889
Severance expense
423
5,938
2,364
5,938
Litigation settlement expense
—
—
—
2,090
Costs associated with loan refinancing or
payoff
—
—
38,269
31,958
Interest expense, net
34,914
33,584
142,002
135,870
Transaction costs
5,784
1,583
23,789
3,698
Impairment charges
2,206
10,735
2,206
27,283
Depreciation and amortization
42,398
35,728
158,834
138,395
Income before equity in loss from joint
ventures, other items and discontinued operations
47,520
42,574
147,728
215,703
Equity in loss from joint ventures
(905
)
(5
)
(381
)
(22
)
Gain on sale of real estate
3,717
349
4,174
3,037
Gain on sale of investment in direct
financing leases
—
—
—
5,514
Income before income taxes
50,332
42,918
151,521
224,232
Income tax benefit (expense)
530
(108
)
3,035
(2,285
)
Income from continuing operations
$
50,862
$
42,810
$
154,556
$
221,947
Discontinued operations:
Income from discontinued operations before
other items
4,937
11,221
37,241
45,036
Impairment on public charter school
portfolio sale
(21,433
)
—
(21,433
)
—
Gain on sale of real estate from
discontinued operations
1,931
—
31,879
—
(Loss) income from discontinued
operations
(14,565
)
11,221
47,687
45,036
Net income
36,297
54,031
202,243
266,983
Preferred dividend requirements
(6,034
)
(6,034
)
(24,136
)
(24,142
)
Net income available to common
shareholders of EPR Properties
$
30,263
$
47,997
$
178,107
$
242,841
Net income available to common
shareholders of EPR Properties per share:
Continuing operations
$
0.57
$
0.50
$
1.70
$
2.66
Discontinued operations
(0.18
)
0.15
0.62
0.61
Basic
$
0.39
$
0.65
$
2.32
$
3.27
Continuing operations
$
0.57
$
0.50
$
1.70
$
2.66
Discontinued operations
(0.18
)
0.15
0.62
0.61
Diluted
$
0.39
$
0.65
$
2.32
$
3.27
Shares used for computation (in
thousands):
Basic
78,456
74,343
76,746
74,292
Diluted
78,485
74,402
76,782
74,337
EPR Properties
Condensed Consolidated Balance
Sheets
(Unaudited, dollars in
thousands)
December 31,
2019
2018
Assets
Real estate investments, net of
accumulated depreciation of $989,254 and $883,174 at December 31,
2019 and 2018, respectively
$
5,197,308
$
5,024,057
Land held for development
28,080
34,177
Property under development
36,756
287,546
Operating lease right-of-use assets
211,187
—
Mortgage notes and related accrued
interest receivable
357,391
517,467
Investment in direct financing leases,
net
—
20,558
Investment in joint ventures
34,317
34,486
Cash and cash equivalents
528,763
5,872
Restricted cash
2,677
12,635
Accounts receivable
86,858
98,369
Other assets
94,174
96,223
Total assets
$
6,577,511
$
6,131,390
Liabilities and Equity
Accounts payable and accrued
liabilities
$
122,939
$
168,463
Operating lease liabilities
235,650
—
Dividends payable
35,458
32,799
Unearned rents and interest
74,829
79,051
Debt
3,102,830
2,986,054
Total liabilities
3,571,706
3,266,367
Total equity
$
3,005,805
$
2,865,023
Total liabilities and equity
$
6,577,511
$
6,131,390
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
all periods presented. The operating results relating to
discontinued operations are as follows (dollars in thousands):
Three Months Ended December
31,
Year Ended December
31,
2019
2018
2019
2018
Rental revenue
$
5,231
$
12,024
$
36,289
$
47,277
Mortgage and other financing income
1,863
3,546
14,284
13,533
Total revenue
7,094
15,570
50,573
60,810
Property operating expense
(11
)
605
573
1,102
Costs associated with loan refinancing or
payoff
43
—
181
—
Interest expense, net
(7
)
(69
)
(351
)
(363
)
Depreciation and amortization
2,132
3,813
12,929
15,035
Income from discontinued operations before
other items
4,937
11,221
37,241
45,036
Impairment on public charter school
portfolio sale
(21,433
)
—
(21,433
)
—
Gain on sale of real estate
1,931
—
31,879
—
(Loss) income from discontinued
operations
$
(14,565
)
$
11,221
$
47,687
$
45,036
Non-GAAP Financial Measures
Funds From Operations (FFO) and Funds From Operations As
Adjusted (FFOAA)
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. FFOAA is
presented by adding to FFO costs (gain) associated with loan
refinancing or payoff, net, transaction costs, severance expense,
litigation settlement expense, preferred share redemption costs,
termination fees associated with tenants' exercises of public
charter school buy-out options and provision for loan losses and
subtracting gain on early extinguishment of debt, gain on insurance
recovery and deferred income tax (benefit) expense.
FFO and FFOAA 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
and FFOAA herein because it believes this information is useful to
investors in this regard. FFO and FFOAA are non-GAAP financial
measures. FFO and FFOAA 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 and FFOAA the same way so comparisons with
other REITs may not be meaningful. The following table summarizes
FFO and FFOAA for the three months and year ended December 31, 2019
and 2018 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 December
31,
Year Ended December
31,
2019
2018
2019
2018
FFO:
Net income available to common
shareholders of EPR Properties
$
30,263
$
47,997
$
178,107
$
242,841
Gain on sale of real estate
(5,648
)
(349
)
(36,053
)
(3,037
)
Gain on sale of investment in direct
financing leases
—
—
—
(5,514
)
Impairment charges
23,639
10,735
23,639
27,283
Real estate depreciation and
amortization
44,242
39,297
170,717
152,508
Allocated share of joint venture
depreciation
551
56
2,213
226
FFO available to common shareholders of
EPR Properties
$
93,047
$
97,736
$
338,623
$
414,307
FFO available to common shareholders of
EPR Properties
$
93,047
$
97,736
$
338,623
$
414,307
Add: Preferred dividends for Series C
preferred shares
1,937
1,939
7,754
7,759
Add: Preferred dividends for Series E
preferred shares
1,939
1,939
7,756
7,756
Diluted FFO available to common
shareholders of EPR Properties
$
96,923
$
101,614
$
354,133
$
429,822
FFOAA:
FFO available to common shareholders of
EPR Properties
$
93,047
$
97,736
338,623
$
414,307
Costs associated with loan refinancing or
payoff
43
—
38,450
31,958
Transaction costs
5,784
1,583
23,789
3,698
Severance expense
423
5,938
2,364
5,938
Litigation settlement expense
—
—
—
2,090
Termination fees included in gain on
sale
1,217
—
24,075
1,864
Deferred income tax (benefit) expense
(847
)
(182
)
(4,115
)
573
FFOAA available to common shareholders of
EPR Properties
$
99,667
$
105,075
$
423,186
$
460,428
FFO available to common shareholders of
EPR Properties
$
99,667
$
105,075
$
423,186
$
460,428
Add: Preferred dividends for Series C
preferred shares
1,937
1,939
7,754
7,759
Add: Preferred dividends for Series E
preferred shares
1,939
1,939
7,756
7,756
Diluted FFO available to common
shareholders of EPR Properties
$
103,543
$
108,953
$
438,696
$
475,943
FFO per common share:
Basic
$
1.19
$
1.31
$
4.41
$
5.58
Diluted
1.18
1.30
4.39
5.51
FFOAA per common share:
Basic
$
1.27
$
1.41
$
5.51
$
6.20
Diluted
1.26
1.39
5.44
6.10
Shares used for computation (in
thousands):
Basic
78,456
74,343
76,746
74,292
Diluted
78,485
74,402
76,782
74,337
Weighted average shares
outstanding-diluted EPS
78,485
74,402
76,782
74,337
Effect of dilutive Series C preferred
shares
2,184
2,133
2,164
2,114
Effect of dilutive Series E preferred
shares
1,640
1,615
1,631
1,607
Adjusted weighted average shares
outstanding-diluted Series C and Series E
82,309
78,150
80,577
78,058
Other financial information:
Straight-lined rental revenue
$
3,516
$
3,216
$
13,552
$
10,229
Dividends per common share
$
1.125
$
1.080
$
4.500
$
4.320
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 and year ended December 31, 2019 and 2018.
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.
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 gain on insurance
recovery, severance expense, litigation settlement expense, the
provision for loan losses, transaction costs and prepayment fees.
This number for the quarter is then multiplied by four to get an
annual amount.
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 and net income (both reported in accordance
with GAAP) to Net Debt, 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):
December 31,
2019
2018
Net Debt:
Debt
$
3,102,830
$
2,986,054
Deferred financing costs, net
37,165
33,941
Cash and cash equivalents
(528,763
)
(5,872
)
Net Debt
$
2,611,232
$
3,014,123
Three Months Ended December
31,
2019
2018
EBITDAre and Adjusted EBITDA:
Net income
$
36,297
$
54,031
Interest expense, net
34,907
33,515
Income tax (benefit) expense
(530
)
108
Depreciation and amortization
44,530
39,541
Gain on sale of real estate
(5,648
)
(349
)
Impairment charges
23,639
10,735
Costs associated with loan refinancing or
payoff
43
—
Equity in loss from joint ventures
905
5
EBITDAre (for the quarter)
$
134,143
$
137,586
Severance expense
423
5,938
Transaction costs
5,784
1,583
Prepayment fees
—
(7,391
)
Adjusted EBITDA (for the quarter)
$
140,350
$
137,716
Adjusted EBITDA (1)
$
561,400
$
550,864
Net Debt/Adjusted EBITDA Ratio
4.7
5.5
(1) Adjusted EBITDA for the quarter is
multiplied by four to calculate an annual amount.
Amounts above include the impact of
discontinued operations, which are separately classified in the
consolidated statements of income.
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 direct financing
leases, net, 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):
December 31, 2019
December 31, 2018
Total Investments:
Real estate investments, net of
accumulated depreciation
$
5,197,308
$
5,024,057
Add back accumulated depreciation on real
estate investments
989,254
883,174
Land held for development
28,080
34,177
Property under development
36,756
287,546
Mortgage notes and related accrued
interest receivable
357,391
517,467
Investment in direct financing leases,
net
—
20,558
Investment in joint ventures
34,317
34,486
Intangible assets, gross (1)
57,385
51,414
Notes receivable and related accrued
interest receivable, net (1)
14,026
5,445
Total investments
$
6,714,517
$
6,858,324
Total investments
$
6,714,517
$
6,858,324
Cash and cash equivalents
528,763
5,872
Restricted cash
2,677
12,635
Operating lease right-of-use assets
211,187
—
Accounts receivable
86,858
98,369
Less: accumulated depreciation on real
estate investments
(989,254
)
(883,174
)
Less: accumulated amortization on
intangible assets
(12,693
)
(8,923
)
Prepaid expenses and other current
assets
35,456
48,287
Total assets
$
6,577,511
$
6,131,390
(1) Included in other assets in the
accompanying consolidated balance sheet. Other assets include the
following:
December 31, 2019
December 31, 2018
Intangible assets, gross
$
57,385
$
51,414
Less: accumulated amortization on
intangible assets
(12,693
)
(8,923
)
Notes receivable and related accrued
interest receivable, net
14,026
5,445
Prepaid expenses and other current
assets
35,456
48,287
Total other assets
$
94,174
$
96,223
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 higher growth and better yields. 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 our acquisition or
disposition of properties, our capital resources, future
expenditures for development projects, expected dividend payments,
and our results of operations and financial condition.
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. In addition, references to our budgeted amounts and guidance
are forward-looking statements. Forward-looking statements
necessarily are dependent on assumptions, data or methods that may
be incorrect or imprecise. In particular, the anticipated gaming
venue investment is subject to the parties' entry into definitive
agreements, as well as the completion of confirmatory due
diligence, and the closing of such transaction will be subject to
customary closing conditions to be included in the definitive
agreements, including regulatory approvals. There can be no
assurances that definitive agreements will be entered into or that
the investment will be consummated in the time presently expected,
if at all. 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 Annual Report on Form 10-K and, to
the extent applicable, our Quarterly Reports 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/20200224005893/en/
EPR Properties Brian Moriarty, 888-EPR-REIT
www.eprkc.com
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