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Condensed Consolidating Financial Statements
12 Months Ended
Dec. 31, 2012
Condensed Consolidating Financial Statements [Abstract]  
Condensed Consolidating Financial Statements
Condensed Consolidating Financial Statements

A portion of our subsidiaries have guaranteed the Company’s indebtedness under the unsecured senior notes and the unsecured revolving credit facility. The guarantees are joint and several, full and unconditional. The following summarizes the Company’s condensed consolidating information as of December 31, 2012 and 2011 and for the years ended December 31, 2012, 2011 and 2010 (in thousands):
Condensed Consolidating Balance Sheet
As of December 31, 2012


 
EPR
Properties 
(Issuer)
 
Wholly  Owned
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Consolidated
Elimination
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Rental properties, net
$

 
$
1,103,184

 
$
781,909

 
$

 
$
1,885,093

Rental properties held for sale, net

 

 
2,788

 

 
2,788

Land held for development

 

 
196,177

 

 
196,177

Property under development

 
25,419

 
3,957

 

 
29,376

Mortgage notes and related accrued interest receivable, net

 
414,075

 
41,677

 

 
455,752

Investment in a direct financing lease, net

 
234,089

 

 

 
234,089

Investment in joint ventures
7,250

 

 
4,721

 

 
11,971

Cash and cash equivalents
1,531

 
460

 
8,673

 

 
10,664

Restricted cash

 
8,590

 
15,401

 

 
23,991

Deferred financing costs, net
13,563

 
4,776

 
1,340

 

 
19,679

Accounts receivable, net
139

 
16,830

 
21,769

 

 
38,738

Intercompany notes receivable
103,104

 

 
4,147

 
(107,251
)
 

Investments in subsidiaries
2,231,079

 

 

 
(2,231,079
)
 

Other assets
21,482

 
3,956

 
12,974

 

 
38,412

Total assets
$
2,378,148

 
$
1,811,379

 
$
1,095,533

 
$
(2,338,330
)
 
$
2,946,730

Liabilities and Equity
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
$
37,441

 
$
16,524

 
$
11,516

 
$

 
$
65,481

Dividends payable
41,186

 

 

 

 
41,186

Unearned rents and interest

 
7,203

 
4,130

 

 
11,333

Intercompany notes payable

 

 
107,251

 
(107,251
)
 

Long-term debt
840,000

 
39,000

 
489,832

 

 
1,368,832

Total liabilities
918,627

 
62,727

 
612,729

 
(107,251
)
 
1,486,832

EPR Properties shareholders’ equity
1,459,521

 
1,748,652

 
482,427

 
(2,231,079
)
 
1,459,521

Noncontrolling interests

 

 
377

 

 
377

Equity
$
1,459,521

 
$
1,748,652

 
$
482,804

 
$
(2,231,079
)
 
$
1,459,898

Total liabilities and equity
$
2,378,148

 
$
1,811,379

 
$
1,095,533

 
$
(2,338,330
)
 
$
2,946,730

 
Condensed Consolidating Balance Sheet
As of December 31, 2011

 
EPR
Properties 
(Issuer)
 
Wholly  Owned
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Consolidated
Elimination
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Rental properties, net
$

 
$
958,033

 
$
861,143

 
$

 
$
1,819,176

Rental properties held for sale, net

 

 
4,696

 

 
4,696

Land held for development

 

 
184,457

 

 
184,457

Property under development

 
18,295

 
4,466

 

 
22,761

Mortgage notes and related accrued interest receivable, net

 
323,794

 
1,303

 

 
325,097

Investment in a direct financing lease, net

 
233,619

 

 

 
233,619

Investment in joint ventures
20,821

 

 
4,232

 

 
25,053

Cash and cash equivalents
1,932

 
1,141

 
11,552

 

 
14,625

Restricted cash

 
9,877

 
9,435

 

 
19,312

Deferred financing costs, net
9,291

 
7,380

 
1,856

 

 
18,527

Accounts receivable, net
79

 
10,041

 
24,885

 

 
35,005

Intercompany notes receivable
100,030

 

 
3,788

 
(103,818
)
 

Investments in subsidiaries
1,627,298

 

 

 
(1,627,298
)
 

Other assets
14,869

 
3,615

 
13,183

 

 
31,667

Total assets
$
1,774,320

 
$
1,565,795

 
$
1,124,996

 
$
(1,731,116
)
 
$
2,733,995

Liabilities and Equity
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
$
15,560

 
$
9,724

 
$
10,752

 
$

 
$
36,036

Dividends payable
38,711

 

 

 

 
38,711

Unearned rents and interest

 
5,410

 
1,440

 

 
6,850

Intercompany notes payable

 

 
103,818

 
(103,818
)
 

Long-term debt
250,000

 
396,347

 
507,948

 

 
1,154,295

Total liabilities
304,271

 
411,481

 
623,958

 
(103,818
)
 
1,235,892

EPR Properties shareholders’ equity
1,470,049

 
1,154,314

 
472,984

 
(1,627,298
)
 
1,470,049

Noncontrolling interests

 

 
28,054

 

 
28,054

Equity
$
1,470,049

 
$
1,154,314

 
$
501,038

 
$
(1,627,298
)
 
$
1,498,103

Total liabilities and equity
$
1,774,320

 
$
1,565,795

 
$
1,124,996

 
$
(1,731,116
)
 
$
2,733,995

 


Condensed Consolidating Statement of Income
For the Year Ended December 31, 2012

 
EPR
Properties 
(Issuer)
 
Wholly  Owned
Subsidiary
Guarantors
 
Non-
Guarantors
Subsidiaries
 
Consolidated
Elimination
 
Consolidated
Rental revenue
$

 
$
136,055

 
$
102,385

 
$

 
$
238,440

Tenant reimbursements

 
1,650

 
16,925

 

 
18,575

Other income (expense)
93

 
(3
)
 
679

 

 
769

Mortgage and other financing income
494

 
60,089

 
3,419

 

 
64,002

Intercompany fee income
2,706

 

 

 
(2,706
)
 

Interest income on intercompany notes receivable
16,967

 

 
353

 
(17,320
)
 

Total revenue
20,260

 
197,791

 
123,761

 
(20,026
)
 
321,786

Equity in subsidiaries’ earnings
137,443

 

 

 
(137,443
)
 

Property operating expense

 
4,860

 
20,423

 

 
25,283

Intercompany fee expense

 

 
2,706

 
(2,706
)
 

Other expense

 
4

 
1,677

 

 
1,681

General and administrative expense

 
14,049

 
9,121

 

 
23,170

Costs associated with loan refinancing or payoff

 
477

 
150

 

 
627

Interest expense, net
35,240

 
10,796

 
30,620

 

 
76,656

Interest expense on intercompany notes payable

 

 
17,320

 
(17,320
)
 

Transaction costs
404

 

 

 

 
404

Impairment charges

 

 
10,870

 

 
10,870

Depreciation and amortization
1,039

 
24,732

 
24,483

 

 
50,254

Income before equity in income from joint ventures and discontinued operations
121,020

 
142,873

 
6,391

 
(137,443
)
 
132,841

Equity in income from joint ventures
536

 

 
489

 

 
1,025

Income from continuing operations
$
121,556

 
$
142,873

 
$
6,880

 
$
(137,443
)
 
$
133,866

Discontinued operations:
 
 
 
 
 
 
 
 
 
Income (loss) from discontinued operations

 
(2
)
 
866

 

 
864

Impairment charges

 

 
(13,039
)
 

 
(13,039
)
Gain (loss) on sale or acquisition of real estate

 
282

 
(309
)
 

 
(27
)
Net income (loss)
121,556

 
143,153

 
(5,602
)
 
(137,443
)
 
121,664

Add: Net income attributable to noncontrolling interests

 

 
(108
)
 

 
(108
)
Net income (loss) attributable to EPR Properties
121,556

 
143,153

 
(5,710
)
 
(137,443
)
 
121,556

Preferred dividend requirements
(24,508
)
 

 

 

 
(24,508
)
Preferred share redemption costs
(3,888
)
 

 

 

 
(3,888
)
Net income (loss) available to common shareholders of EPR Properties
$
93,160

 
$
143,153

 
$
(5,710
)
 
$
(137,443
)
 
$
93,160

Comprehensive income (loss) attributable to EPR Properties
$
118,715

 
$
143,076

 
$
(4,626
)
 
$
(138,450
)
 
$
118,715

 
Condensed Consolidating Statement of Income
For the Year Ended December 31, 2011

 
EPR
Properties 
(Issuer)
 
Wholly  Owned
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Consolidated
Elimination
 
Consolidated
Rental revenue
$

 
$
122,486

 
$
101,767

 
$

 
$
224,253

Tenant reimbursements

 
1,778

 
16,187

 

 
17,965

Other income
94

 
8

 
325

 

 
427

Mortgage and other financing income
416

 
54,689

 
528

 

 
55,633

Intercompany fee income
2,726

 

 

 
(2,726
)
 

Interest income on intercompany notes receivable
16,665

 

 
2,365

 
(19,030
)
 

Total revenue
19,901

 
178,961

 
121,172

 
(21,756
)
 
298,278

Equity in subsidiaries’ earnings
111,301

 

 

 
(111,301
)
 

Property operating expense

 
4,028

 
20,188

 

 
24,216

Intercompany fee expense

 

 
2,726

 
(2,726
)
 

Other expense

 
21

 
1,926

 

 
1,947

General and administrative expense

 
12,008

 
8,165

 

 
20,173

Costs associated with loan refinancing or payoff, net

 

 
3,700

 

 
3,700

Interest expense, net
20,069

 
19,559

 
31,853

 

 
71,481

Interest expense on intercompany notes payable

 

 
19,030

 
(19,030
)
 

Transaction costs
1,403

 

 
324

 

 
1,727

Impairment charges

 

 
18,684

 

 
18,684

Depreciation and amortization
1,062

 
21,367

 
23,326

 

 
45,755

Income (loss) before equity in income from joint ventures and discontinued operations
108,668

 
121,978

 
(8,750
)
 
(111,301
)
 
110,595

Equity in income from joint ventures
2,805

 

 
42

 

 
2,847

Income (loss) from continuing operations
$
111,473

 
$
121,978

 
$
(8,708
)
 
$
(111,301
)
 
$
113,442

Discontinued operations:
 
 
 
 
 
 
 
 
 
Interest income on intercompany notes receivable
3,755

 

 

 
(3,755
)
 

Interest expense on intercompany notes payable

 
(3,755
)
 

 
3,755

 

Income (loss) from discontinued operations

 
1,888

 
(2,234
)
 

 
(346
)
Impairment charges

 

 
(17,372
)
 
 
 
(17,372
)
Transaction costs

 

 
(3
)
 

 
(3
)
Gain on sale or acquisition of real estate

 
19,530

 
15

 

 
19,545

Net income (loss)
115,228

 
139,641

 
(28,302
)
 
(111,301
)
 
115,266

Add: Net loss attributable to noncontrolling interests

 

 
(38
)
 

 
(38
)
Net income (loss) attributable to EPR Properties
115,228

 
139,641

 
(28,340
)
 
(111,301
)
 
115,228

Preferred dividend requirements
(28,140
)
 

 

 

 
(28,140
)
Preferred share redemption costs
(2,769
)
 

 

 

 
(2,769
)
Net income (loss) available to common shareholders of EPR Properties
$
84,319

 
$
139,641

 
$
(28,340
)
 
$
(111,301
)
 
$
84,319

Comprehensive income (loss) attributable to EPR Properties
$
118,499

 
$
141,292

 
$
(26,719
)
 
$
(114,573
)
 
$
118,499

  
Condensed Consolidating Statement of Income
For the Year Ended December 31, 2010

 
EPR
Properties 
(Issuer)
 
Wholly  Owned
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Consolidated
Elimination
 
Consolidated
Rental revenue
$

 
$
113,374

 
$
99,757

 
$

 
$
213,131

Tenant reimbursements

 
1,714

 
15,386

 

 
17,100

Other income
101

 
6

 
429

 

 
536

Mortgage and other financing income
456

 
51,102

 
523

 

 
52,081

Intercompany fee income
2,595

 

 

 
(2,595
)
 

Interest income on intercompany notes receivable
15,389

 

 
2,185

 
(17,574
)
 

Total revenue
18,541

 
166,196

 
118,280

 
(20,169
)
 
282,848

Equity in subsidiaries’ earnings
92,944

 

 

 
(92,944
)
 

Property operating expense
12

 
3,960

 
18,745

 

 
22,717

Intercompany fee expense

 

 
2,595

 
(2,595
)
 

Other expense

 
62

 
1,044

 

 
1,106

General and administrative expense

 
10,412

 
7,813

 

 
18,225

Costs associated with loan refinancing or payoff

 
11,288

 
95

 

 
11,383

Interest expense, net
10,244

 
23,759

 
36,331

 

 
70,334

Interest expense on intercompany notes payable

 

 
17,574

 
(17,574
)
 

Transaction costs
347

 

 
170

 

 
517

Provision for loan losses

 

 
700

 

 
700

Impairment charges
463

 

 

 

 
463

Depreciation and amortization
596

 
19,272

 
23,208

 

 
43,076

Income before equity in income from joint ventures and discontinued operations
99,823

 
97,443

 
10,005

 
(92,944
)
 
114,327

Equity in income from joint ventures
2,295

 

 
(157
)
 

 
2,138

Income from continuing operations
$
102,118

 
$
97,443

 
$
9,848

 
$
(92,944
)
 
$
116,465

Discontinued operations:
 
 
 
 
 
 
 
 
 
Interest income on intercompany notes receivable
12,756

 

 
1,000

 
(13,756
)
 

Interest expense on intercompany notes payable

 
(12,756
)
 
(1,000
)
 
13,756

 

Loss from discontinued operations

 
(701
)
 
(3,726
)
 

 
(4,427
)
Transaction costs

 
(7,270
)
 

 

 
(7,270
)
Gain (loss) on sale or acquisition of real estate

 
9,023

 
(736
)
 
 
 
8,287

Net income
114,874

 
85,739

 
5,386

 
(92,944
)
 
113,055

Add: Net loss attributable to noncontrolling interests

 

 
1,819

 

 
1,819

Net income attributable to EPR Properties
114,874

 
85,739

 
7,205

 
(92,944
)
 
114,874

Preferred dividend requirements
(30,206
)
 

 

 

 
(30,206
)
Net income available to common shareholders of EPR Properties
$
84,668

 
$
85,739

 
$
7,205

 
$
(92,944
)
 
$
84,668

Comprehensive income attributable to EPR Properties
$
126,080

 
$
96,996

 
$
7,154

 
$
(104,150
)
 
$
126,080


 
Condensed Consolidating Statement of Cash Flows
For the Year Ended December 31, 2012

 
EPR
Properties 
(Issuer)
 
Wholly  Owned
Subsidiary
Guarantors
 
Non-Guarantor
Subsidiaries
 
Consolidated
Intercompany fee income (expense)
$
2,706

 
$

 
$
(2,706
)
 
$

Interest income (expense) on intercompany receivable/payable
16,967

 

 
(16,967
)
 

Net cash provided (used) by other operating activities
(19,940
)
 
163,010

 
64,185

 
207,255

Net cash provided (used) by operating activities
(267
)
 
163,010

 
44,512

 
207,255

Investing activities:
 
 
 
 
 
 

Acquisition of rental properties and other assets
(422
)
 
(67,890
)
 
(4,876
)
 
(73,188
)
Investment in unconsolidated joint ventures
(1,800
)
 

 

 
(1,800
)
Investment in mortgage notes receivable

 
(90,975
)
 
(22,848
)
 
(113,823
)
Proceeds from sale of investment in a direct financing lease, net

 
4,494

 

 
4,494

Additions to property under development

 
(99,924
)
 
(13,675
)
 
(113,599
)
Investment in intercompany notes payable
(3,074
)
 

 
3,074

 

Advances to subsidiaries, net
(416,859
)
 
447,674

 
(30,815
)
 

Net cash provided (used) by investing activities of continuing operations
(422,155
)
 
193,379

 
(69,140
)
 
(297,916
)
Net proceeds from sale of real estate from discontinued operations

 
282

 
41,851

 
42,133

Net cash provided (used) by investing activities
(422,155
)
 
193,661

 
(27,289
)
 
(255,783
)
Financing activities:
 
 
 
 
 
 
 
Proceeds from long-term debt facilities
590,000

 
281,000

 

 
871,000

Principal payments on long-term debt

 
(638,347
)
 
(20,224
)
 
(658,571
)
Deferred financing fees paid
(5,770
)
 

 
(30
)
 
(5,800
)
Net proceeds from issuance of common shares
231

 

 

 
231

Net proceeds from issuance of preferred shares
120,567

 

 

 
120,567

Redemption of preferred shares
(115,013
)
 

 

 
(115,013
)
Impact of stock option exercises, net
(1,987
)
 

 

 
(1,987
)
Purchase of common shares for treasury
(3,232
)
 

 

 
(3,232
)
Dividends paid to shareholders
(162,775
)
 

 

 
(162,775
)
Net cash provided (used) by financing
422,021

 
(357,347
)
 
(20,254
)
 
44,420

Effect of exchange rate changes on cash

 
(5
)
 
152

 
147

Net decrease in cash and cash equivalents
(401
)
 
(681
)
 
(2,879
)
 
(3,961
)
Cash and cash equivalents at beginning of the period
1,932

 
1,141

 
11,552

 
14,625

Cash and cash equivalents at end of the period
$
1,531

 
$
460

 
$
8,673

 
$
10,664

 
Condensed Consolidating Statement of Cash Flows
For the Year Ended December 31, 2011

 
EPR
Properties 
(Issuer)
 
Wholly  Owned
Subsidiary
Guarantors
 
Non-Guarantor
Subsidiaries
 
Consolidated
Intercompany fee income (expense)
$
2,726

 
$

 
$
(2,726
)
 
$

Interest income (expense) on intercompany receivable/payable
16,665

 

 
(16,665
)
 

Net cash provided (used) by other operating activities
(12,924
)
 
147,972

 
60,751

 
195,799

Net cash provided by operating activities
6,467

 
147,972

 
41,360

 
195,799

Investing activities:
 
 
 
 
 
 

Acquisition of rental properties and other assets
(603
)
 
(46,822
)
 
(5,750
)
 
(53,175
)
Investment in unconsolidated joint ventures
(2,773
)
 

 
(1,197
)
 
(3,970
)
Investment in mortgage note receivable

 
(18,391
)
 
(1,297
)
 
(19,688
)
Investment in a direct financing lease, net

 
(2,113
)
 

 
(2,113
)
Additions to property under development

 
(53,355
)
 
(4,571
)
 
(57,926
)
Investment in intercompany notes payable
127,111

 
(132,074
)
 
4,963

 

Advances to subsidiaries, net
108,495

 
(170,198
)
 
61,703

 

Net cash provided (used) by investing activities of continuing operations
232,230

 
(422,953
)
 
53,851

 
(136,872
)
Net cash used in investing activites of discontinued operations

 
(58
)
 

 
(58
)
Net proceeds from sale of discontinued operations

 
205,936

 
20,676

 
226,612

Net cash provided (used) in investing activites
232,230

 
(217,075
)
 
74,527

 
89,682

Financing activities:
 
 
 
 
 
 
 
Proceeds from long-term debt facilities

 
387,000

 

 
387,000

Principal payments on long-term debt

 
(314,973
)
 
(110,886
)
 
(425,859
)
Deferred financing fees paid
(396
)
 
(3,330
)
 
(5
)
 
(3,731
)
Net proceeds from issuance of common shares
253

 

 

 
253

Redemption of preferred shares
(80,030
)
 

 

 
(80,030
)
Impact of stock option exercises, net
966

 

 

 
966

Purchase of common shares for treasury
(3,070
)
 

 

 
(3,070
)
Dividends paid to shareholders
(157,844
)
 

 

 
(157,844
)
Net cash provided (used) by financing activities
(240,121
)
 
68,697

 
(110,891
)
 
(282,315
)
Effect of exchange rate changes on cash

 
(166
)
 
(151
)
 
(317
)
Net increase (decrease) in cash and cash equivalents
(1,424
)
 
(572
)
 
4,845

 
2,849

Cash and cash equivalents at beginning of the period
3,356

 
1,713

 
6,707

 
11,776

Cash and cash equivalents at end of the period
$
1,932

 
$
1,141

 
$
11,552

 
$
14,625

 
Condensed Consolidating Statement of Cash Flows
For the Year Ended December 31, 2010

 
EPR
Properties 
(Issuer)
 
Wholly  Owned
Subsidiary
Guarantors
 
Non-Guarantor
Subsidiaries
 
Consolidated
Intercompany fee income (expense)
$
2,595

 
$

 
$
(2,595
)
 
$

Interest income (expense) on intercompany receivable/payable
15,389

 

 
(15,389
)
 

Net cash provided by other operating activities
16,964

 
113,243

 
50,184

 
180,391

Net cash provided by operating activities
34,948

 
113,243

 
32,200

 
180,391

Investing activities:
 
 
 
 
 
 

Acquisition of rental properties and other assets
(4,286
)
 
(128,371
)
 
1,600

 
(131,057
)
Investment in unconsolidated joint ventures
(15,662
)
 

 
(1,029
)
 
(16,691
)
Cash paid related to Cappelli settlement
3,483

 

 
(8,069
)
 
(4,586
)
Proceeds from promissory note receivable paydown

 
(5,696
)
 

 
(5,696
)
Investment in direct financing lease, net

 
(51,833
)
 

 
(51,833
)
Additions to property under development

 
(1,804
)
 
(3,130
)
 
(4,934
)
Investment in intercompany notes payable
(42,801
)
 
38,363

 
4,438

 

Advances to subsidiaries, net
(218,024
)
 
174,829

 
43,195

 

Net cash provided (used) by investing activities of continuing operations
(277,290
)
 
25,488

 
37,005

 
(214,797
)
Net cash used by other investing activities of discontinued operations

 
(111,718
)
 
(1,259
)
 
(112,977
)
Net proceeds from sale of real estate from discontinued operations

 

 
7,456

 
7,456

Net cash provided (used) by investing activities
(277,290
)
 
(86,230
)
 
43,202

 
(320,318
)
Financing activities:
 
 
 
 
 
 
 
Proceeds from long-term debt facilities
245,725

 
524,500

 

 
770,225

Principal payments on long-term debt

 
(543,569
)
 
(72,925
)
 
(616,494
)
Deferred financing fees paid
(5,686
)
 
(5,870
)
 
(53
)
 
(11,609
)
Net proceeds from issuance of common shares
141,134

 

 

 
141,134

Impact of stock option exercises, net
(815
)
 

 

 
(815
)
Purchase of common shares for treasury
(2,182
)
 

 

 
(2,182
)
Dividends paid to shareholders
(146,324
)
 

 

 
(146,324
)
Other, net
281

 

 
10

 
291

Net cash provided (used) by financing activities of continuing operations
232,133

 
(24,939
)
 
(72,968
)
 
134,226

Net cash used by financing activities of discontinued operations

 
(1,348
)
 
(4,923
)
 
(6,271
)
Net cash provided (used) by financing activities
232,133

 
(26,287
)
 
(77,891
)
 
127,955

Effect of exchange rate changes on cash

 
881

 
(271
)
 
610

Net increase (decrease) in cash and cash equivalents
(10,209
)
 
1,607

 
(2,760
)
 
(11,362
)
Cash and cash equivalents at beginning of the period
13,565

 
106

 
9,467

 
23,138

Cash and cash equivalents at end of the period
$
3,356

 
$
1,713

 
$
6,707

 
$
11,776