EPR Properties Provides Update Regarding the Impact of COVID-19
March 24 2020 - 4:15PM
Business Wire
Announces $150 Million Share Repurchase
Program
EPR Properties (NYSE:EPR) a leading experiential net lease real
estate investment trust (REIT), today provided the following update
regarding the evolving impact of COVID-19.
Company CEO Greg Silvers stated, “As we are all keenly aware,
our nation and the world continue to navigate through the
unprecedented challenges brought on by COVID-19. Our top priorities
are taking care of our employees and all of our key stakeholders,
to make sure everyone stays healthy and to position the Company to
best navigate these difficult times. As we all work together to
mitigate the spread of the virus, many of our tenants are
temporarily closing their operations. While this period will impact
our tenants’ businesses, we are committed to working with them as
appropriate for our long-term mutual benefit.”
Mr. Silvers continued, “We have the ability to withstand the
situation as we currently view it, given the Company’s strong
balance sheet and liquidity position, including a precautionary
draw on our line of credit. Also, in response to the market
dislocation of our stock price, our Board of Trustees has
authorized a limited share repurchase program which we will
selectively deploy while carefully considering our liquidity
position. By placing a pause on acquisitions and development, we
are intensely focused on maximizing our financial flexibility and
capacity until we have better visibility to the depth and duration
of this situation.”
Key Updates:
- Strong Liquidity Position - As of March 24, 2020, the Company
had cash of approximately $1.25 billion, including $750 million
borrowed by the Company on March 20, 2020 under its Revolving
Credit Facility as a precautionary measure to increase its cash
position and preserve financial flexibility considering the current
uncertainty in the global markets.
- Share Repurchase Program – Today the Company announced that its
Board of Trustees (the "Board") approved a limited share repurchase
program in response to the extraordinary dislocation in the
Company’s stock price. The Company may repurchase up to $150
million of the Company's Common Shares, but is not required to
repurchase a minimum number of Common Shares. The share repurchase
program is scheduled to expire on December 31, 2020, unless
extended or earlier terminated by the Board.
- Reduced Capital Needs - The Company has no debt maturities
until 2023. Additionally, as previously disclosed, the Company
revised its 2020 anticipated investment spending to include only
previously committed investment spending totaling approximately
$100.0 million.
Mr. Silvers concluded, “Despite the current environment, we
continue to firmly believe in the long-term advantages of our
portfolio and our strategy. Once the country emerges from this
pandemic, we believe the demand for affordable out-of-home
entertainment will be stronger than ever, as people re-engage,
socialize and enjoy the experiences that our properties
provide.”
Additional Information Regarding the Share Repurchase
Program
The actual timing, number and value of Common Shares repurchased
under the share repurchase program will be determined by management
at its discretion and will depend on a number of factors,
including, but not limited to, the market price of the Common
Shares, general market and economic conditions, and applicable
legal requirements. The share repurchase program may be modified,
suspended or terminated by the Company at any time without prior
notice. Under the share repurchase program, the Company may
repurchase its Common Shares in the open market, through block
trades, in privately negotiated transactions, pursuant to a trading
plan separately adopted in the future, or by other means, in
accordance with federal securities laws and other applicable laws.
As of March 23, 2020, the Company had approximately 78 million
Common Shares outstanding.
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 share repurchase program, our
acquisition or disposition of properties, our capital resources,
future expenditures for development projects 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 and other filings with the SEC.
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/20200324005733/en/
EPR Properties Brian Moriarty, 888-EPR-REIT
www.eprkc.com
EPR Properties (NYSE:EPR)
Historical Stock Chart
From Mar 2024 to Apr 2024
EPR Properties (NYSE:EPR)
Historical Stock Chart
From Apr 2023 to Apr 2024