EPR Properties Announces Deferral of Uncommitted Investment Spending
March 12 2020 - 5:17PM
Business Wire
Revises 2020 Investment Spending
Guidance
Withdraws 2020 Earnings Guidance
EPR Properties (NYSE:EPR) today announced the deferral of its
anticipated gaming venue investment and all other uncommitted
investment spending due to unfavorable current market conditions.
As previously announced, the Company entered into a non-binding
term sheet with respect to the gaming investment of approximately
$1.0 billion. Neither party has any obligation under the term sheet
to proceed with the transaction and there can be no assurance that
the transaction will be consummated once market conditions
improve.
The Company’s previously announced 2020 guidance included the
impact of this anticipated gaming venue investment of approximately
$1.0 billion as well as other uncommitted investment spending
totaling approximately $600.0 million that together was expected to
add approximately $0.60 of Funds From Operations as Adjusted
(FFOAA) per diluted common share net of capital requirements. As a
result of the unfavorable and uncertain current market conditions,
the Company is revising its 2020 investment spending guidance to
only reflect committed investment spending totaling approximately
$100.0 million and withdrawing all other previously issued
guidance.
“During these unprecedented times, our decisions today reflect
our long-term commitment to maintaining the strength of our balance
sheet,” stated Company President and CEO Greg Silvers. “With
approximately $500.0 million in unrestricted cash, 100%
availability under our $1.0 billion line of credit, low leverage
and no near-term debt maturities, we believe the strength of our
balance sheet will allow us to weather this period.”
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 the uncertain
financial impact of COVID-19, 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.
References to our earnings guidance and investment spending
guidance are forward-looking statements. 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 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200312005849/en/
EPR Properties Brian Moriarty, 888-EPR-REIT
www.eprkc.com
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