Maryland | 001-13561 | 43-1790877 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description | |
99.1 | Press Release dated April 29, 2014 issued by EPR Properties announcing its results of operations and financial condition for the first quarter ended March 31, 2014. | |
99.2 | Supplemental Operating and Financial Data for the first quarter ended March 31, 2014, made available by EPR Properties on April 29, 2014. |
EPR PROPERTIES | |||
By: | /s/ Mark A. Peterson | ||
Mark A. Peterson | |||
Senior Vice President, Treasurer and Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Press Release dated April 29, 2014 issued by EPR Properties announcing its results of operations and financial condition for the first quarter ended March 31, 2014. | |
99.2 | Supplemental Operating and Financial Data for the first quarter ended March 31, 2014, made available by EPR Properties on April 29, 2014. |
• | Total revenue was $89.9 million for the first quarter of 2014, representing an 8% increase from $83.0 million for the same quarter in 2013. |
• | Net income available to common shareholders was $37.6 million, or $0.71 per diluted common share, for the first quarter of 2014 compared to $35.3 million, or $0.75 per diluted common share, for the same quarter in 2013. |
• | Funds From Operations (FFO) for the first quarter of 2014 was $52.7 million, or $1.00 per diluted common share, compared to $48.3 million, or $1.03 per diluted common share, for the same quarter in 2013. |
• | FFO as adjusted for the first quarter of 2014 was $49.6 million, or $0.94 per diluted common share, compared to $44.1 million, or $0.94 per diluted common share, for the same quarter in 2013. |
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Amount | FFO/share | Amount | FFO/share | |||||||||||||
FFO | $ | 52,684 | $ | 1.00 | $ | 48,314 | $ | 1.03 | ||||||||
Transaction costs (benefit) | (3,180 | ) | (0.06 | ) | 318 | 0.01 | ||||||||||
Gain on early extinguishment of debt | — | — | (4,539 | ) | (0.10 | ) | ||||||||||
Gain on sale of land | (330 | ) | (0.01 | ) | — | — | ||||||||||
Deferred income tax expense | 407 | 0.01 | — | — | ||||||||||||
FFO as adjusted | $ | 49,581 | $ | 0.94 | $ | 44,093 | $ | 0.94 | ||||||||
Dividends declared per common share | $ | 0.86 | $ | 0.79 | ||||||||||||
FFO as adjusted payout ratio | 91 | % | 84 | % |
• | The Entertainment segment included investments in 113 megaplex theatre properties, nine entertainment retail centers (which include eight additional megaplex theatre properties) and six family entertainment centers. The Company’s portfolio of owned entertainment properties consisted of 11.1 million square feet and was 99% leased, including megaplex theaters that were 100% leased. |
• | The Education segment included investments in 56 public charter school properties and two early education centers. The Company’s portfolio of owned education properties consisted of 2.9 million square feet and was 100% leased. |
• | The Recreation segment included investments in 14 metropolitan ski areas, four waterparks and five golf entertainment complexes. The Company’s portfolio of owned recreation properties was 100% leased. |
• | The Other segment consisted primarily of the land held for development in Sullivan County, New York. |
• | Entertainment investment spending totaled $10.3 million, and was related primarily to investments in build-to-suit construction of four megaplex theatres, redevelopment of two existing megaplex theatres and two family entertainment centers that are subject to long-term triple net leases or long-term mortgage agreements. |
• | Education investment spending totaled $36.3 million, and was related to investments in build-to-suit construction of 14 public charter schools, three private schools and six early childhood education centers, as well as the acquisition of one early childhood education center located in Mesa, Arizona, each of which is subject to a long-term triple net lease or long-term mortgage agreement. |
• | Recreation investment spending totaled $20.7 million, and was related to build-to-suit construction of nine TopGolf golf entertainment facilities, as well as funding improvements at the Company's ski property located in Maryland. |
• | Other investment spending totaled $1.2 million, and was related to the land held for development in Sullivan County, New York. |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Rental revenue | $ | 66,431 | $ | 60,388 | |||
Tenant reimbursements | 4,588 | 4,744 | |||||
Other income | 174 | 24 | |||||
Mortgage and other financing income | 18,664 | 17,795 | |||||
Total revenue | 89,857 | 82,951 | |||||
Property operating expense | 6,449 | 7,035 | |||||
Other expense | 98 | 149 | |||||
General and administrative expense | 7,462 | 6,652 | |||||
Gain on early extinguishment of debt | — | (4,539 | ) | ||||
Interest expense, net | 19,899 | 19,989 | |||||
Transaction costs | 196 | 318 | |||||
Depreciation and amortization | 15,327 | 12,822 | |||||
Income before equity in income from joint ventures and other items | 40,426 | 40,525 | |||||
Equity in income from joint ventures | 311 | 351 | |||||
Gain on sale of land | 330 | — | |||||
Income before income taxes | 41,067 | 40,876 | |||||
Income tax expense | 925 | — | |||||
Income from continuing operations | $ | 40,142 | $ | 40,876 | |||
Discontinued operations: | |||||||
Income (loss) from discontinued operations | 15 | (235 | ) | ||||
Transaction (costs) benefit | 3,376 | — | |||||
Gain on sale of real estate | — | 565 | |||||
Net income attributable to EPR Properties | 43,533 | 41,206 | |||||
Preferred dividend requirements | (5,952 | ) | (5,952 | ) | |||
Net income available to common shareholders of EPR Properties | $ | 37,581 | $ | 35,254 | |||
Per share data attributable to EPR Properties common shareholders: | |||||||
Basic earnings per share data: | |||||||
Income from continuing operations | $ | 0.65 | $ | 0.74 | |||
Income from discontinued operations | 0.07 | 0.01 | |||||
Net income available to common shareholders | $ | 0.72 | $ | 0.75 | |||
Diluted earnings per share data: | |||||||
Income from continuing operations | $ | 0.65 | $ | 0.74 | |||
Income from discontinued operations | 0.06 | 0.01 | |||||
Net income available to common shareholders | $ | 0.71 | $ | 0.75 | |||
Shares used for computation (in thousands): | |||||||
Basic | 52,541 | 46,854 | |||||
Diluted | 52,719 | 47,047 |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
FFO: | |||||||
Net income available to common shareholders of EPR Properties | $ | 37,581 | $ | 35,254 | |||
Gain on sale of real estate | — | (565 | ) | ||||
Real estate depreciation and amortization | 15,049 | 13,468 | |||||
Allocated share of joint venture depreciation | 54 | 157 | |||||
FFO available to common shareholders of EPR Properties | $ | 52,684 | $ | 48,314 | |||
FFO per common share attributable to EPR Properties: | |||||||
Basic | $ | 1.00 | $ | 1.03 | |||
Diluted | 1.00 | 1.03 | |||||
Shares used for computation (in thousands): | |||||||
Basic | 52,541 | 46,854 | |||||
Diluted | 52,719 | 47,047 | |||||
Other financial information: | |||||||
Straight-lined rental revenue | $ | 1,111 | $ | 1,214 | |||
Dividends per common share | $ | 0.86 | $ | 0.79 |
(A) | 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 and management provides FFO herein because it believes this information is useful to investors in this regard. FFO is a widely used measure of the operating performance of real estate companies and is provided here as a supplemental measure to GAAP net income available to common shareholders and earnings per share. Pursuant to the definition of FFO by the Board of Governors of NAREIT, we calculate FFO as net income available to common shareholders, computed in accordance with GAAP, excluding gains and losses from sales or acquisitions of depreciable operating properties and impairment losses of depreciable 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. We have calculated FFO for all periods presented in accordance with this definition. FFO is a non-GAAP financial measure. FFO does not represent cash flows from operations as defined by GAAP and is not indicative that cash flows are adequate to fund all cash needs and is not to be considered an alternative 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 the same way so comparisons with other REITs may not be meaningful. In addition to FFO, we present FFO as adjusted. Management believes it is useful to provide it here as a supplemental measure to GAAP net income available to common shareholders and earnings per share. FFO as adjusted is FFO plus provision for loan losses, costs (gain) associated with loan refinancing or payoff, net, preferred share redemption costs and transaction costs (benefit), less gain on early extinguishment of debt, gain (loss) on sale of land and deferred tax benefit (expense). FFO as adjusted is a non-GAAP financial measure. FFO as adjusted does not represent cash flows from operations as defined by GAAP and is not indicative that cash flows are adequate to fund all cash needs and is not to be considered an alternative to net income or |
March 31, 2014 | December 31, 2013 | ||||||
Assets | |||||||
Rental properties, net of accumulated depreciation of $422,463 and $409,643 at March 31, 2014 and December 31, 2013, respectively | $ | 2,089,933 | $ | 2,104,151 | |||
Land held for development | 202,552 | 201,342 | |||||
Property under development | 138,586 | 89,473 | |||||
Mortgage notes and related accrued interest receivable | 490,840 | 486,337 | |||||
Investment in a direct financing lease, net | 242,905 | 242,212 | |||||
Investment in joint ventures | 5,586 | 5,275 | |||||
Cash and cash equivalents | 20,406 | 7,958 | |||||
Restricted cash | 19,568 | 9,714 | |||||
Deferred financing costs, net | 22,778 | 23,344 | |||||
Accounts receivable, net | 41,616 | 42,538 | |||||
Other assets | 64,343 | 59,932 | |||||
Total assets | $ | 3,339,113 | $ | 3,272,276 | |||
Liabilities and Equity | |||||||
Accounts payable and accrued liabilities | $ | 47,526 | $ | 72,327 | |||
Dividends payable | 21,184 | 19,553 | |||||
Unearned rents and interest | 27,281 | 17,046 | |||||
Debt | 1,482,608 | 1,475,336 | |||||
Total liabilities | 1,578,599 | 1,584,262 | |||||
EPR Properties shareholders’ equity | 1,760,137 | 1,687,637 | |||||
Noncontrolling interests | 377 | 377 | |||||
Total equity | 1,760,514 | 1,688,014 | |||||
Total liabilities and equity | $ | 3,339,113 | $ | 3,272,276 |
Supplemental Operating and Financial Data | ||||||||
First Quarter Ended March 31, 2014 |
EPR Properties | ||||||||
Supplemental Operating and Financial Data | ||||||||
First Quarter Ended March 31, 2014 | ||||||||
Table of Contents | ||||||||
Section | Page | |||||||
Company Profile | ||||||||
Investor Information | ||||||||
Selected Financial Information | ||||||||
Selected Balance Sheet Information | ||||||||
Selected Operating Data | ||||||||
Funds From Operations and Funds From Operations as Adjusted | ||||||||
Adjusted Funds From Operations | ||||||||
Capital Structure | ||||||||
Summary of Ratios | ||||||||
Capital Spending and Disposition Summaries | ||||||||
Property Under Development - Investment Spending Estimates | ||||||||
Financial and Investment Information by Segment | ||||||||
Lease Expirations | ||||||||
Top Ten Customers by Revenue from Continuing Operations | ||||||||
Summary of Mortgage Notes Receivable | ||||||||
Summary of Notes Receivable | ||||||||
Definitions-Non-GAAP Financial Measures |
The Company |
Company Strategy |
Senior Management | ||
David Brain | Greg Silvers | |
President and Chief Executive Officer | Executive Vice President and Chief Operating Officer | |
Mark Peterson | Jerry Earnest | |
Senior Vice President and Chief Financial Officer | Senior Vice President and Chief Investment Officer | |
Neil Sprague | Mike Hirons | |
Senior Vice President and General Counsel | Vice President - Strategic Planning |
Company Information | ||
Corporate Headquarters | Trading Symbols | |
909 Walnut Street, Suite 200 | Common Stock: | |
Kansas City, MO 64106 | EPR | |
888-EPR-REIT | Preferred Stock: | |
www.eprkc.com | EPR-PrC | |
EPR-PrE | ||
Stock Exchange Listing | EPR-PrF | |
New York Stock Exchange |
Equity Research Coverage | ||
BMO Capital Markets | Paul Adornato | 212-885-4170 |
Citi Global Markets | Michael Bilerman/Nick Joseph | 212-816-4471 |
FBR Capital Markets & Co. | Daniel Altscher | 703-312-1651 |
Goldman Sachs | Andrew Rosavich | 212-902-2796 |
J.P. Morgan | Anthony Paolone | 212-622-6682 |
Kansas City Capital Associates | Jonathan Braatz | 816-932-8019 |
Keybanc Capital Markets | Jordan Sadler/Craig Mailman | 917-368-2280 |
Ladenburg Thalmann | Daniel Donlan | 214-409-2056 |
RBC Capital Markets | Richard Moore | 440-715-2646 |
Stifel | Simon Yarmak | 443-224-1345 |
EPR Properties | |||||
Selected Financial Information | |||||
(Unaudited, dollars and shares in thousands) | |||||
Three months ended March 31, | |||||
Operating Information: | 2014 | 2013 | |||
Revenue (1) | 89,857 | 82,951 | |||
Net income available to common shareholders of | |||||
EPR Properties | 37,581 | 35,254 | |||
Earnings before interest, taxes, depreciation and amortization | |||||
(EBITDA) - continuing operations (2) | 75,652 | 68,797 | |||
Earnings before interest, taxes, depreciation and amortization | |||||
(EBITDA) - discontinued operations (2) | 3,391 | 688 | |||
Adjusted EBITDA - continuing operations (2) | 75,848 | 69,115 | |||
Adjusted EBITDA - discontinued operations (2) | 15 | 688 | |||
Interest expense, net (1) | 19,899 | 19,989 | |||
Recurring principal payments | 2,728 | 4,303 | |||
Capitalized interest | 1,287 | 344 | |||
Straight-lined rental revenue | 1,111 | 1,214 | |||
Dividends declared on preferred shares | 5,952 | 5,952 | |||
Dividends declared on common shares | 45,360 | 37,161 | |||
General and administrative expense | 7,462 | 6,652 | |||
Balance Sheet Information: | March 31, | ||||
2014 | 2013 | ||||
Total assets | 3,339,113 | 2,951,792 | |||
Accumulated depreciation | 422,463 | 383,651 | |||
Total assets before accumulated depreciation (gross assets) | 3,761,576 | 3,335,443 | |||
Unencumbered real estate assets (3) | |||||
Number | 182 | 159 | |||
Gross book value | 2,741,936 | 2,095,661 | |||
Annualized stabilized NOI | 275,032 | 213,501 | |||
Total debt | 1,482,608 | 1,383,392 | |||
Equity | 1,760,514 | 1,457,505 | |||
Common shares outstanding | 53,448 | 47,039 | |||
Total market capitalization (using EOP closing price) | 4,682,422 | 4,178,027 | |||
Debt/total assets | 44 | % | 47 | % | |
Debt/total market capitalization | 32 | % | 33 | % | |
Debt/gross assets | 39 | % | 41 | % | |
Debt/Adjusted EBITDA - continuing operations (1)(4) | 4.89 | 5.00 | |||
Debt/Adjusted EBITDA - continuing and discontinued operations (4) | 4.89 | 4.95 | |||
(1) Excludes discontinued operations. | |||||
(2) See pages 29 through 30 for definitions. | |||||
(3) Includes unencumbered rental properties, gross, direct financing lease, net and mortgage notes receivable; excludes property under development and undeveloped land. | |||||
(4) Adjusted EBITDA is for the quarter annualized. See pages 29 through 30 for definitions. |
EPR Properties | ||||||||||||||||||||||||
Selected Balance Sheet Information | ||||||||||||||||||||||||
(Unaudited, dollars in thousands) | ||||||||||||||||||||||||
1st Quarter 2014 | 4th Quarter 2013 | 3rd Quarter 2013 | 2nd Quarter 2013 | 1st Quarter 2013 | 4th Quarter 2012 | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Rental properties: (1) | ||||||||||||||||||||||||
Entertainment | $ | 2,143,392 | $ | 2,152,138 | $ | 2,065,181 | $ | 2,023,640 | $ | 2,017,909 | $ | 2,020,348 | ||||||||||||
Education | 199,580 | 193,372 | 184,728 | 120,468 | 112,193 | 102,311 | ||||||||||||||||||
Recreation | 159,334 | 158,194 | 70,955 | 70,961 | 70,961 | 69,804 | ||||||||||||||||||
Other | 10,090 | 10,090 | 14,062 | 43,580 | 43,580 | 71,421 | ||||||||||||||||||
Less: accumulated depreciation | (422,463 | ) | (409,643 | ) | (398,356 | ) | (395,191 | ) | (383,651 | ) | (376,003 | ) | ||||||||||||
Land held for development | 202,552 | 201,342 | 200,325 | 199,001 | 197,740 | 196,177 | ||||||||||||||||||
Property under development | 138,586 | 89,473 | 86,048 | 77,492 | 38,369 | 29,376 | ||||||||||||||||||
Mortgage notes receivable: (2) | ||||||||||||||||||||||||
Entertainment | 58,220 | 58,220 | 91,309 | 77,464 | 77,464 | 76,199 | ||||||||||||||||||
Education | 61,027 | 56,505 | 55,412 | 42,647 | 35,904 | 28,945 | ||||||||||||||||||
Recreation | 366,561 | 366,580 | 364,829 | 359,630 | 352,668 | 348,091 | ||||||||||||||||||
Other | 5,032 | 5,032 | 2,521 | 2,521 | 2,521 | 2,517 | ||||||||||||||||||
Investment in a direct financing lease, net | 242,905 | 242,212 | 240,990 | 239,803 | 235,302 | 234,089 | ||||||||||||||||||
Investment in joint ventures | 5,586 | 5,275 | 13,683 | 12,962 | 12,287 | 11,971 | ||||||||||||||||||
Cash and cash equivalents | 20,406 | 7,958 | 24,141 | 20,030 | 11,763 | 10,664 | ||||||||||||||||||
Restricted cash | 19,568 | 9,714 | 18,110 | 17,030 | 32,614 | 23,991 | ||||||||||||||||||
Accounts receivable, net | 41,616 | 42,538 | 40,326 | 39,354 | 38,246 | 38,738 | ||||||||||||||||||
Other assets | 87,121 | 83,276 | 61,009 | 64,893 | 55,922 | 58,091 | ||||||||||||||||||
Total assets | $ | 3,339,113 | $ | 3,272,276 | $ | 3,135,273 | $ | 3,016,285 | $ | 2,951,792 | $ | 2,946,730 | ||||||||||||
Liabilities and Equity | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 47,526 | $ | 72,327 | $ | 58,273 | $ | 51,722 | $ | 47,798 | $ | 65,481 | ||||||||||||
Common dividends payable | 15,232 | 13,601 | 12,636 | 12,418 | 37,161 | 35,165 | ||||||||||||||||||
Preferred dividends payable | 5,952 | 5,952 | 5,951 | 5,952 | 5,952 | 6,021 | ||||||||||||||||||
Unearned rents and interest | 27,281 | 17,046 | 18,979 | 16,821 | 19,984 | 11,333 | ||||||||||||||||||
Line of credit | — | — | 68,000 | 24,000 | 59,000 | 39,000 | ||||||||||||||||||
Debt | 1,482,608 | 1,475,336 | 1,477,973 | 1,450,735 | 1,324,392 | 1,329,832 | ||||||||||||||||||
Total liabilities | 1,578,599 | 1,584,262 | 1,641,812 | 1,561,648 | 1,494,287 | 1,486,832 | ||||||||||||||||||
Equity: | ||||||||||||||||||||||||
Common stock and additional paid-in- capital | 2,090,420 | 2,004,397 | 1,825,790 | 1,784,123 | 1,775,653 | 1,769,711 | ||||||||||||||||||
Preferred stock at par value | 139 | 139 | 139 | 139 | 139 | 139 | ||||||||||||||||||
Treasury stock | (65,857 | ) | (62,177 | ) | (62,177 | ) | (62,169 | ) | (61,227 | ) | (55,308 | ) | ||||||||||||
Accumulated other comprehensive income | 15,129 | 17,193 | 17,536 | 20,392 | 20,114 | 20,622 | ||||||||||||||||||
Distributions in excess of net income | (279,694 | ) | (271,915 | ) | (288,204 | ) | (288,225 | ) | (277,551 | ) | (275,643 | ) | ||||||||||||
EPR Properties shareholders' equity | 1,760,137 | 1,687,637 | 1,493,084 | 1,454,260 | 1,457,128 | 1,459,521 | ||||||||||||||||||
Noncontrolling interests | 377 | 377 | 377 | 377 | 377 | 377 | ||||||||||||||||||
Total equity | 1,760,514 | 1,688,014 | 1,493,461 | 1,454,637 | 1,457,505 | 1,459,898 | ||||||||||||||||||
Total liabilities and equity | $ | 3,339,113 | $ | 3,272,276 | $ | 3,135,273 | $ | 3,016,285 | $ | 2,951,792 | $ | 2,946,730 | ||||||||||||
(1) Includes rental properties held for sale. | ||||||||||||||||||||||||
(2) Includes related accrued interest receivable. |
EPR Properties | |||||||||||||||||||||||
Selected Operating Data | |||||||||||||||||||||||
(Unaudited, dollars in thousands) | |||||||||||||||||||||||
1st Quarter 2014 | 4th Quarter 2013 | 3rd Quarter 2013 | 2nd Quarter 2013 | 1st Quarter 2013 | 4th Quarter 2012 | ||||||||||||||||||
Rental revenue and tenant reimbursements: | |||||||||||||||||||||||
Entertainment | $ | 61,410 | $ | 61,373 | $ | 59,352 | $ | 58,974 | $ | 59,727 | $ | 60,180 | |||||||||||
Education | 5,478 | 5,198 | 4,422 | 3,152 | 3,157 | 2,921 | |||||||||||||||||
Recreation | 3,846 | 3,751 | 2,682 | 1,782 | 1,909 | 1,502 | |||||||||||||||||
Other | 285 | 283 | 305 | 704 | 339 | 331 | |||||||||||||||||
Mortgage and other financing income: | |||||||||||||||||||||||
Entertainment | 1,723 | 1,761 | 2,258 | 2,223 | 2,204 | 1,936 | |||||||||||||||||
Education (1) | 8,778 | 8,666 | 8,507 | 8,145 | 7,957 | 7,724 | |||||||||||||||||
Recreation | 8,066 | 8,081 | 8,807 | 7,789 | 7,555 | 7,423 | |||||||||||||||||
Other | 97 | 94 | 67 | 79 | 79 | 34 | |||||||||||||||||
Other income (loss) | 174 | 145 | 1,441 | 125 | (29 | ) | 400 | ||||||||||||||||
Total revenue | $ | 89,857 | $ | 89,352 | $ | 87,841 | $ | 82,973 | $ | 82,898 | $ | 82,451 | |||||||||||
Property operating expense | 6,449 | 6,413 | 6,579 | 5,990 | 7,034 | 6,915 | |||||||||||||||||
Other expense | 98 | 150 | 204 | 208 | 96 | 334 | |||||||||||||||||
General and administrative expense | 7,462 | 6,146 | 6,764 | 6,051 | 6,652 | 5,396 | |||||||||||||||||
Costs associated with loan refinancing or payoff | — | — | 223 | 5,943 | — | 150 | |||||||||||||||||
Gain on early extinguishment of debt | — | — | — | — | (4,539 | ) | — | ||||||||||||||||
Interest expense, net | 19,899 | 20,632 | 20,435 | 20,000 | 19,989 | 20,062 | |||||||||||||||||
Transaction costs | 196 | 1,096 | 317 | 224 | 318 | 31 | |||||||||||||||||
Impairment charges | — | — | — | — | — | 1,160 | |||||||||||||||||
Depreciation and amortization | 15,327 | 14,807 | 13,141 | 13,176 | 12,822 | 12,201 | |||||||||||||||||
Income before equity in income in joint ventures and other items | 40,426 | 40,108 | 40,178 | 31,381 | 40,526 | 36,202 | |||||||||||||||||
Equity in income from joint ventures | 311 | 230 | 351 | 466 | 351 | 358 | |||||||||||||||||
Gain on sale or acquisiton, net | 330 | 3,017 | — | — | — | — | |||||||||||||||||
Gain on previously held equity interest | — | 4,853 | — | — | — | — | |||||||||||||||||
Income tax benefit (expense) | (925 | ) | 14,176 | — | — | — | — | ||||||||||||||||
Income from continuing operations | 40,142 | 62,384 | 40,529 | 31,847 | 40,877 | 36,560 | |||||||||||||||||
Discontinued operations: | |||||||||||||||||||||||
Income (loss) from discontinued operations | 15 | 135 | (195 | ) | 629 | (236 | ) | 287 | |||||||||||||||
Impairment charges | — | — | — | — | — | (6,819 | ) | ||||||||||||||||
Transaction (costs) benefit | 3,376 | — | — | — | — | — | |||||||||||||||||
Gain (loss) on sale of real estate | — | 523 | 3,168 | — | 565 | (747 | ) | ||||||||||||||||
Net income | 43,533 | 63,042 | 43,502 | 32,476 | 41,206 | 29,281 | |||||||||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | (47 | ) | ||||||||||||||||
Preferred dividend requirements | (5,952 | ) | (5,951 | ) | (5,951 | ) | (5,952 | ) | (5,952 | ) | (6,503 | ) | |||||||||||
Preferred share redemption costs | — | — | — | — | — | (3,888 | ) | ||||||||||||||||
Net income available to common shareholders of EPR Properties | $ | 37,581 | $ | 57,091 | $ | 37,551 | $ | 26,524 | $ | 35,254 | $ | 18,843 | |||||||||||
(1) Represents income from owned assets under a direct financing lease, eight mortgage notes receivable and two notes receivable. |
EPR Properties | |||||||||||||||||||||||||
Funds From Operations and Funds From Operations as Adjusted | |||||||||||||||||||||||||
(Unaudited, dollars in thousands except per share information) | |||||||||||||||||||||||||
1st Quarter 2014 | 4th Quarter 2013 | 3rd Quarter 2013 | 2nd Quarter 2013 | 1st Quarter 2013 | 4th Quarter 2012 | ||||||||||||||||||||
Funds From Operations ("FFO") (1): | |||||||||||||||||||||||||
Net income available to common shareholders of EPR Properties | $ | 37,581 | $ | 57,091 | $ | 37,551 | $ | 26,524 | $ | 35,254 | $ | 18,843 | |||||||||||||
(Gain) loss on sale or acquisition of real estate | — | (3,540 | ) | (3,168 | ) | — | (565 | ) | 747 | ||||||||||||||||
Gain on previously held equity interest | — | (4,853 | ) | — | — | — | — | ||||||||||||||||||
Real estate depreciation and amortization | 15,049 | 14,528 | 13,069 | 13,498 | 13,468 | 13,318 | |||||||||||||||||||
Allocated share of joint venture depreciation | 54 | 64 | 164 | 162 | 157 | 150 | |||||||||||||||||||
Impairment charges | — | — | — | — | — | 7,979 | |||||||||||||||||||
FFO available to common shareholders of EPR Properties | $ | 52,684 | $ | 63,290 | $ | 47,616 | $ | 40,184 | $ | 48,314 | $ | 41,037 | |||||||||||||
FFO available to common shareholders of EPR Properties | $ | 52,684 | $ | 63,290 | $ | 47,616 | $ | 40,184 | $ | 48,314 | $ | 41,037 | |||||||||||||
Add: Preferred dividends for Series C preferred shares | — | 1,941 | — | — | — | — | |||||||||||||||||||
Diluted FFO available to common shareholders | $ | 52,684 | $ | 65,231 | $ | 47,616 | $ | 40,184 | $ | 48,314 | $ | 41,037 | |||||||||||||
Funds From Operations as adjusted (1): | |||||||||||||||||||||||||
FFO available to common shareholders of EPR Properties | $ | 52,684 | $ | 63,290 | $ | 47,616 | $ | 40,184 | $ | 48,314 | $ | 41,037 | |||||||||||||
Costs associated with loan refinancing or payoff | — | — | 223 | 5,943 | — | 150 | |||||||||||||||||||
Transaction costs (benefit) | (3,180 | ) | 1,096 | 317 | 224 | 318 | 31 | ||||||||||||||||||
Gain on early extinguishment of debt | — | — | — | — | (4,539 | ) | — | ||||||||||||||||||
Preferred share redemption costs | — | — | — | — | — | 3,888 | |||||||||||||||||||
Gain on sale of land | (330 | ) | — | — | — | — | — | ||||||||||||||||||
Deferred income tax expense (benefit) | 407 | (14,787 | ) | — | — | — | — | ||||||||||||||||||
FFO as adjusted available to common shareholders of EPR Properties | $ | 49,581 | $ | 49,599 | $ | 48,156 | $ | 46,351 | $ | 44,093 | $ | 45,106 | |||||||||||||
FFO per common share attributable to EPR Properties: | |||||||||||||||||||||||||
Basic | $ | 1.00 | $ | 1.25 | $ | 1.01 | $ | 0.85 | $ | 1.03 | $ | 0.88 | |||||||||||||
Diluted | 1.00 | 1.23 | 1.00 | 0.85 | 1.03 | 0.87 | |||||||||||||||||||
FFO as adjusted per common share attributable to EPR Properties: | |||||||||||||||||||||||||
Basic | $ | 0.94 | $ | 0.98 | $ | 1.02 | $ | 0.98 | $ | 0.94 | $ | 0.96 | |||||||||||||
Diluted | 0.94 | 0.97 | 1.01 | 0.98 | 0.94 | 0.96 | |||||||||||||||||||
Shares used for computation (in thousands): | |||||||||||||||||||||||||
Basic | 52,541 | 50,792 | 47,349 | 47,081 | 46,854 | 46,850 | |||||||||||||||||||
Diluted | 52,719 | 52,933 | 47,524 | 47,294 | 47,047 | 47,090 | |||||||||||||||||||
Weighted average shares outstanding-diluted EPS | 52,719 | 50,959 | 47,524 | 47,294 | 47,047 | 47,090 | |||||||||||||||||||
Effect of dilutive Series C preferred shares | — | 1,974 | — | — | — | — | |||||||||||||||||||
Adjusted weighted-average shares outstanding-diluted | 52,719 | 52,933 | 47,524 | 47,294 | 47,047 | 47,090 | |||||||||||||||||||
(1) See pages 29 through 30 for definitions. |
EPR Properties | ||||||||||||||||||||||||
Adjusted Funds From Operations | ||||||||||||||||||||||||
(Unaudited, dollars in thousands except per share information) | ||||||||||||||||||||||||
1st Quarter 2014 | 4th Quarter 2013 | 3rd Quarter 2013 | 2nd Quarter 2013 | 1st Quarter 2013 | 4th Quarter 2012 | |||||||||||||||||||
Adjusted Funds from Operations ("AFFO") (1): | ||||||||||||||||||||||||
FFO available to common shareholders of EPR Properties | $ | 52,684 | $ | 63,290 | $ | 47,616 | $ | 40,184 | $ | 48,314 | $ | 41,037 | ||||||||||||
Adjustments: | ||||||||||||||||||||||||
Amortization of above market leases, net | 48 | 48 | — | — | — | — | ||||||||||||||||||
Transaction costs (benefit) | (3,180 | ) | 1,096 | 317 | 224 | 318 | 31 | |||||||||||||||||
Non-real estate depreciation and amortization | 278 | 278 | 277 | 277 | 277 | 276 | ||||||||||||||||||
Deferred financing fees amortization | 1,015 | 1,044 | 1,010 | 988 | 999 | 994 | ||||||||||||||||||
Costs associated with loan refinancing or payoff | — | — | 223 | 5,943 | — | 150 | ||||||||||||||||||
Share-based compensation expense to management and trustees | 2,328 | 1,690 | 1,659 | 1,618 | 1,548 | 1,417 | ||||||||||||||||||
Maintenance capital expenditures (2) | (1,154 | ) | (2,627 | ) | (619 | ) | (279 | ) | (525 | ) | (2,622 | ) | ||||||||||||
Straight-lined rental revenue | (1,111 | ) | (1,575 | ) | (1,350 | ) | (707 | ) | (1,214 | ) | (927 | ) | ||||||||||||
Non-cash portion of mortgage and other financing income | (1,286 | ) | (1,288 | ) | (1,329 | ) | (1,393 | ) | (1,265 | ) | (1,253 | ) | ||||||||||||
Gain on early extinguishment of debt | — | — | — | — | (4,539 | ) | — | |||||||||||||||||
Preferred share redemption costs | — | — | — | — | — | 3,888 | ||||||||||||||||||
Gain on sale of land | (330 | ) | — | — | — | — | — | |||||||||||||||||
Deferred income tax expense (benefit) | 407 | (14,787 | ) | — | — | — | — | |||||||||||||||||
AFFO available to common shareholders of EPR Properties | $ | 49,699 | $ | 47,169 | $ | 47,804 | $ | 46,855 | $ | 43,913 | $ | 42,991 | ||||||||||||
Weighted average diluted shares outstanding (in thousands) | 52,719 | 50,959 | 47,524 | 47,294 | 47,047 | 47,090 | ||||||||||||||||||
AFFO per diluted common share | $ | 0.94 | $ | 0.93 | $ | 1.01 | $ | 0.99 | $ | 0.93 | $ | 0.91 | ||||||||||||
Dividends declared per common share | $ | 0.86 | $ | 0.79 | $ | 0.79 | $ | 0.79 | $ | 0.79 | $ | 0.75 | ||||||||||||
AFFO payout ratio (3) | 91 | % | 85 | % | 78 | % | 80 | % | 85 | % | 82 | % | ||||||||||||
(1) See pages 29 through 30 for definitions. | ||||||||||||||||||||||||
(2) Includes maintenance capital expenditures and certain second generation tenant improvements and leasing commissions. | ||||||||||||||||||||||||
(3) AFFO payout ratio is calculated by dividing dividends declared per common share by AFFO per diluted common share. |
EPR Properties | |||||||||||||||||||||||||||
Capital Structure at March 31, 2014 | |||||||||||||||||||||||||||
(Unaudited, dollars in thousands) | |||||||||||||||||||||||||||
Consolidated Debt | |||||||||||||||||||||||||||
Principal Payments Due on Debt: | |||||||||||||||||||||||||||
Mortgages | Unsecured Credit Facility (2) | Unsecured Senior Notes | |||||||||||||||||||||||||
Year | Amortization | Maturities | Bond/Term Loan (1) | Total | Weighted Avg Interest Rate | ||||||||||||||||||||||
2014 | $ | 8,183 | $ | — | $ | — | $ | — | $ | — | $ | 8,183 | 6.07% | ||||||||||||||
2015 | 10,951 | 95,497 | — | — | — | 106,448 | 5.73% | ||||||||||||||||||||
2016 | 6,767 | 96,144 | — | — | — | 102,911 | 6.08% | ||||||||||||||||||||
2017 | 3,588 | 73,102 | — | — | — | 76,690 | 5.91% | ||||||||||||||||||||
2018 | 919 | 12,462 | 275,000 | — | — | 288,381 | 2.60% | ||||||||||||||||||||
2019 | — | — | — | — | — | — | —% | ||||||||||||||||||||
2020 | — | — | — | — | 250,000 | 250,000 | 7.75% | ||||||||||||||||||||
2021 | — | — | — | — | — | — | —% | ||||||||||||||||||||
2022 | — | — | — | — | 350,000 | 350,000 | 5.75% | ||||||||||||||||||||
2023 | — | — | — | — | 275,000 | 275,000 | 5.25% | ||||||||||||||||||||
2024 | — | — | — | — | — | — | —% | ||||||||||||||||||||
Thereafter | — | — | 24,995 | — | — | 24,995 | 0.06% | ||||||||||||||||||||
$ | 30,408 | $ | 277,205 | $ | 299,995 | $ | — | $ | 875,000 | $ | 1,482,608 | 5.32% | |||||||||||||||
Balance | Weighted Avg Interest Rate | Weighted Avg Maturity | |||||||||||||||||||||||||
Fixed rate secured debt | $ | 307,613 | 5.93 | % | 2.35 | ||||||||||||||||||||||
Fixed rate unsecured debt (1) | 1,115,000 | 5.38 | % | 7.26 | |||||||||||||||||||||||
Variable rate secured debt | 24,995 | 0.06 | % | 23.50 | |||||||||||||||||||||||
Variable rate unsecured debt | 35,000 | 1.75 | % | 0.14 | |||||||||||||||||||||||
Total | $ | 1,482,608 | 5.32 | % | 6.44 | ||||||||||||||||||||||
(1) Includes $240 million of term loan that has been fixed through interest rate swaps through July 5, 2017. | |||||||||||||||||||||||||||
(2) Unsecured Credit Facility Summary: | |||||||||||||||||||||||||||
Balance | Rate | ||||||||||||||||||||||||||
Commitment | at 3/31/2014 | Maturity | at 3/31/2014 | ||||||||||||||||||||||||
$ | 535,000 | $ | — | July 23, 2017 | 1.55% | ||||||||||||||||||||||
Note: This facility has a one year extension available at the Company's option and includes an accordion feature in which the facility can be increased to up to $600 million, in each case, subject to certain terms and conditions. |
EPR Properties | ||||||||
Capital Structure at March 31, 2014 and December 31, 2013 | ||||||||
(Unaudited, dollars in thousands) | ||||||||
Consolidated Debt (continued) | ||||||||
Summary of Debt: | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
Mortgage note payable, 5.56%, due June 5, 2015 | $ | 31,052 | $ | 31,235 | ||||
Mortgage note payable, 5.39%, due November 1, 2015 | 5,196 | 5,274 | ||||||
Mortgage notes payable, 5.77%, due November 6, 2015 | 64,512 | 65,070 | ||||||
Mortgage notes payable, 5.84%, due March 6, 2016 | 36,421 | 36,724 | ||||||
Mortgage notes payable, 6.37%, due June 30, 2016 | 26,206 | 26,406 | ||||||
Mortgage notes payable, 6.10%, due October 1, 2016 | 23,539 | 23,719 | ||||||
Mortgage notes payable, 6.02%, due October 6, 2016 | 17,728 | 17,866 | ||||||
Mortgage note payable, 6.06%, due March 1, 2017 | 9,912 | 9,986 | ||||||
Mortgage note payable, 6.07%, due April 6, 2017 | 10,208 | 10,284 | ||||||
Mortgage notes payable, 5.73%-5.95%, due May 1, 2017 | 33,409 | 33,660 | ||||||
Mortgage note payable, 5.29%, due July 1, 2017 | 3,711 | 3,746 | ||||||
Unsecured revolving variable rate credit facility, LIBOR + 1.40%, due July 23, 2017 | — | — | ||||||
Mortgage notes payable, 5.86% due August 1, 2017 | 24,210 | 24,387 | ||||||
Mortgage note payable, 6.19%, due February 1, 2018 | 14,327 | 14,486 | ||||||
Mortgage note payable, 7.37%, due July 15, 2018 | 7,182 | 7,498 | ||||||
Unsecured term loan payable, LIBOR + 1.60%, fixed through interest rate swaps at 2.51% through January 5, 2016 and 2.38% from January 5, 2016 to July 5, 2017, due July 23, 2018 | 275,000 | 265,000 | ||||||
Senior unsecured notes payable, 7.75%, due July 15, 2020 | 250,000 | 250,000 | ||||||
Senior unsecured notes payable, 5.75%, due August 15, 2022 | 350,000 | 350,000 | ||||||
Senior unsecured notes payable, 5.25%, due July 15, 2023 | 275,000 | 275,000 | ||||||
Bonds payable, variable rate, due October 1, 2037 | 24,995 | 24,995 | ||||||
Total | $ | 1,482,608 | $ | 1,475,336 | ||||
EPR Properties | |||||||
Capital Structure | |||||||
Senior Notes | |||||||
Senior Debt Ratings as of March 31, 2014 | |||||||
Moody's | Baa2 (stable) | ||||||
Fitch | BBB- (stable) | ||||||
Standard and Poor's | BB+ (positive) | ||||||
Summary of Covenants | |||||||
The Company's outstanding senior unsecured notes have fixed interest rates of 5.25%, 5.75% and 7.75%. Interest on the senior unsecured notes is paid semiannually. The senior unsecured notes contain various covenants, including: (i) a limitation on incurrence of any debt that would cause the Company's debt to adjusted total assets ratio to exceed 60%; (ii) a limitation on incurrence of any secured debt which would cause the Company’s secured debt to adjusted total assets ratio to exceed 40%; (iii) a limitation on incurrence of any debt which would cause the Company’s debt service coverage ratio to be less than 1.5 times; and (iv) the maintenance at all times of total unencumbered assets not less than 150% of the Company’s outstanding unsecured debt. | |||||||
The following is a summary of the key financial covenants for the Company's 5.25%, 5.75% and 7.75% senior unsecured notes, as defined and calculated per the terms of the notes. These calculations, which are not based on U.S. generally accepted accounting principles, or GAAP, measurements, are presented to investors to show the Company's ability to incur additional debt under the terms of the senior unsecured notes only and are not measures of the Company's liquidity or performance. The actual amounts as of March 31, 2014 and December 31, 2013 are: | |||||||
Actual | Actual | ||||||
Note Covenants | Required | 1st Quarter 2014 (1) | 4th Quarter 2013 | ||||
Limitation on incurrence of total debt (Total Debt/Total Assets) | ≤ 60% | 40% | 41% | ||||
Limitation on incurrence of secured debt (Secured Debt/Total Assets) | ≤ 40% | 9% | 9% | ||||
Debt service coverage (Consolidated Income Available for Debt Service/Annual Debt Service) | ≥ 1.5 x | 3.7x | 3.7x | ||||
Maintenance of total unencumbered assets (Unencumbered Assets/Unsecured Debt) | ≥ 150% of unsecured debt | 265% | 262% | ||||
(1) See page 14 for detailed calculations. | |||||||
EPR Properties | ||||||||||||||||||||
Capital Structure | ||||||||||||||||||||
Senior Notes | ||||||||||||||||||||
(Unaudited, dollars in thousands) | ||||||||||||||||||||
Covenant Calculations | ||||||||||||||||||||
Total Assets: | March 31, 2014 | Total Debt: | March 31, 2014 | |||||||||||||||||
Total Assets | $ | 3,339,113 | Secured debt obligations | $ | 332,608 | |||||||||||||||
Add: accumulated depreciation | 422,463 | Unsecured debt obligations: | ||||||||||||||||||
Less: intangible assets | (6,336 | ) | Unsecured debt | 1,150,000 | ||||||||||||||||
Total Assets | $ | 3,755,240 | Outsanding letters of credit | — | ||||||||||||||||
Guarantees | 20,430 | |||||||||||||||||||
Derivatives at fair market value, net, if liability | — | |||||||||||||||||||
Total Unencumbered Assets: | March 31, 2014 | Total unsecured debt obligations: | 1,170,430 | |||||||||||||||||
Unencumbered real estate assets, gross | $ | 2,741,936 | Total Debt | $ | 1,503,038 | |||||||||||||||
Cash and cash equivalents | 20,406 | |||||||||||||||||||
Land held for development | 202,552 | |||||||||||||||||||
Property under development | 138,586 | |||||||||||||||||||
Total Unencumbered Assets | $ | 3,103,480 | ||||||||||||||||||
Consolidated Income Available for Debt Service: | 1st Quarter 2014 | 4th Quarter 2013 | 3rd Quarter 2013 | 2nd Quarter 2013 | Trailing Twelve Months | |||||||||||||||
Adjusted EBITDA | $ | 75,848 | $ | 76,643 | $ | 74,294 | $ | 70,724 | $ | 297,509 | ||||||||||
Add: Adjusted EBITDA of discontinued operations | 15 | 135 | 10 | 1,201 | 1,361 | |||||||||||||||
Less: straight-line rental revenue | (1,111 | ) | (1,575 | ) | (1,350 | ) | (707 | ) | (4,743 | ) | ||||||||||
Consolidated Income Available for Debt Service | $ | 74,752 | $ | 75,203 | $ | 72,954 | $ | 71,218 | $ | 294,127 | ||||||||||
Annual Debt Service: | ||||||||||||||||||||
Interest expense, gross | $ | 21,190 | $ | 21,416 | $ | 21,460 | $ | 20,632 | $ | 84,698 | ||||||||||
Less: deferred financing fees amortization | (1,015 | ) | (1,044 | ) | (1,010 | ) | (988 | ) | (4,057 | ) | ||||||||||
Annual Debt Service | $ | 20,175 | $ | 20,372 | $ | 20,450 | $ | 19,644 | $ | 80,641 | ||||||||||
Debt Service Coverage | 3.7 | 3.7 | 3.6 | 3.6 | 3.6 | |||||||||||||||
EPR Properties | |||||||||||||||||
Capital Structure at March 31, 2014 | |||||||||||||||||
(Unaudited, dollars in thousands except share information) | |||||||||||||||||
Equity | |||||||||||||||||
Security | Shares Issued and Outstanding | Price per share at March 31, 2014 | Liquidation Preference | Dividend Rate | Convertible | ||||||||||||
Common shares | 53,447,544 | $ | 53.39 | N/A | (1) | N/A | |||||||||||
Series C | 5,400,000 | $ | 21.50 | $ | 135,000 | 5.750% | Y | ||||||||||
Series E | 3,450,000 | $ | 30.50 | $ | 86,250 | 9.000% | Y | ||||||||||
Series F | 5,000,000 | $ | 23.80 | $ | 125,000 | 6.625% | N | ||||||||||
Calculation of Total Market Capitalization: | |||||||||||||||||
Common shares outstanding at March 31, 2014 multiplied by closing price at March 31, 2014 | $ | 2,853,564 | |||||||||||||||
Aggregate liquidation value of Series C preferred shares (2) | 135,000 | ||||||||||||||||
Aggregate liquidation value of Series E preferred shares (2) | 86,250 | ||||||||||||||||
Aggregate liquidation value of Series F preferred shares (2) | 125,000 | ||||||||||||||||
Total debt at March 31, 2014 | 1,482,608 | ||||||||||||||||
Total consolidated market capitalization | $ | 4,682,422 | |||||||||||||||
(1) Total monthly dividends declared in the first quarter of 2014 were $0.855 per share. | |||||||||||||||||
(2) Excludes accrued unpaid dividends at March 31, 2014 |
EPR Properties | |||||||||||
Summary of Ratios | |||||||||||
(Unaudited) | |||||||||||
1st Quarter 2014 | 4th Quarter 2013 | 3rd Quarter 2013 | 2nd Quarter 2013 | 1st Quarter 2013 | 4th Quarter 2012 | ||||||
Debt to total assets (book value) | 44% | 45% | 49% | 49% | 47% | 46% | |||||
Debt to total market capitalization | 32% | 34% | 37% | 35% | 33% | 35% | |||||
Debt to gross assets | 39% | 40% | 44% | 43% | 41% | 41% | |||||
Debt/Adjusted EBITDA - continuing operations (1) | 4.89 | 4.81 | 5.20 | 5.21 | 5.00 | 4.90 | |||||
Debt/Adjusted EBITDA - continuing and discontinued operations (1) | 4.89 | 4.80 | 5.20 | 5.13 | 4.95 | 4.79 | |||||
Secured debt to secured assets | 66% | 67% | 63% | 65% | 55% | 56% | |||||
Unencumbered real estate assets to total real estate assets (2) | 84% | 84% | 83% | 83% | 71% | 70% | |||||
Interest coverage ratio (3) | 3.6 | 3.6 | 3.5 | 3.6 | 3.5 | 3.5 | |||||
Fixed charge coverage ratio (3) | 2.8 | 2.8 | 2.7 | 2.8 | 2.7 | 2.7 | |||||
Debt service coverage ratio (3) | 3.2 | 3.2 | 3.1 | 3.0 | 2.9 | 2.9 | |||||
FFO payout ratio (4) | 86% | 64% | 79% | 93% | 77% | 86% | |||||
FFO as adjusted payout ratio (5) | 91% | 81% | 78% | 81% | 84% | 78% | |||||
AFFO payout ratio (6) | 91% | 85% | 78% | 80% | 85% | 82% | |||||
(1) Adjusted EBITDA is for the quarter annualized. See pages 29 through 30 for definitions. | |||||||||||
(2) Total real estate assets includes rental properties, gross, direct financing lease, net and mortgage notes receivable; excludes property under development and land held for development. | |||||||||||
(3) See page 17 for detailed calculation. | |||||||||||
(4) FFO payout ratio is calculated by dividing dividends declared per common share by FFO per diluted common share. | |||||||||||
(5) FFO as adjusted payout ratio is calculated by dividing dividends declared per common share by FFO as adjusted per diluted common share. | |||||||||||
(6) AFFO payout ratio is calculated by dividing dividends declared per common share by AFFO per diluted common share. |
EPR Properties | |||||||||||||||||||||||
Calculation of Interest, Fixed Charge and Debt Service Coverage Ratios | |||||||||||||||||||||||
(Unaudited, dollars in thousands) | |||||||||||||||||||||||
1st Quarter 2014 | 4th Quarter 2013 | 3rd Quarter 2013 | 2nd Quarter 2013 | 1st Quarter 2013 | 4th Quarter 2012 | ||||||||||||||||||
Interest Coverage Ratio (1): | |||||||||||||||||||||||
Net income | $ | 43,533 | $ | 63,042 | $ | 43,502 | $ | 32,476 | $ | 41,206 | $ | 29,281 | |||||||||||
Impairment charges | — | — | — | — | — | 7,979 | |||||||||||||||||
Transaction costs (benefit) | (3,180 | ) | 1,096 | 317 | 224 | 318 | 31 | ||||||||||||||||
Interest expense, gross | 21,190 | 21,416 | 21,460 | 20,632 | 20,335 | 20,445 | |||||||||||||||||
Depreciation and amortization | 15,327 | 14,807 | 13,346 | 13,776 | 13,745 | 13,594 | |||||||||||||||||
Share-based compensation expense | |||||||||||||||||||||||
to management and trustees | 2,328 | 1,690 | 1,659 | 1,618 | 1,548 | 1,417 | |||||||||||||||||
Costs associated with loan refinancing | |||||||||||||||||||||||
or payoff | — | — | 223 | 5,943 | — | 150 | |||||||||||||||||
Interest cost capitalized | (1,287 | ) | (779 | ) | (1,014 | ) | (626 | ) | (344 | ) | (380 | ) | |||||||||||
Straight-line rental revenue | (1,111 | ) | (1,575 | ) | (1,350 | ) | (707 | ) | (1,214 | ) | (927 | ) | |||||||||||
Gain on early extinguishment of debt | — | — | — | — | (4,539 | ) | — | ||||||||||||||||
(Gain) loss on sale or acquisition of real estate | (330 | ) | (3,540 | ) | (3,168 | ) | — | (565 | ) | 747 | |||||||||||||
Gain on previously held equity interest | — | (4,853 | ) | — | — | — | — | ||||||||||||||||
Deferred income tax expense (benefit) | 407 | (14,787 | ) | — | — | — | — | ||||||||||||||||
Interest coverage amount | $ | 76,877 | $ | 76,517 | $ | 74,975 | $ | 73,336 | $ | 70,490 | $ | 72,337 | |||||||||||
Interest expense, net | $ | 19,899 | $ | 20,632 | $ | 20,435 | $ | 19,972 | $ | 19,989 | $ | 20,062 | |||||||||||
Interest income | 4 | 5 | 11 | 34 | 2 | 3 | |||||||||||||||||
Interest cost capitalized | 1,287 | 779 | 1,014 | 626 | 344 | 380 | |||||||||||||||||
Interest expense, gross | $ | 21,190 | $ | 21,416 | $ | 21,460 | $ | 20,632 | $ | 20,335 | $ | 20,445 | |||||||||||
Interest coverage ratio | 3.6 | 3.6 | 3.5 | 3.6 | 3.5 | 3.5 | |||||||||||||||||
Fixed Charge Coverage Ratio (1): | |||||||||||||||||||||||
Interest coverage amount | $ | 76,877 | $ | 76,517 | $ | 74,975 | $ | 73,336 | $ | 70,490 | $ | 72,337 | |||||||||||
Interest expense, gross | $ | 21,190 | $ | 21,416 | $ | 21,460 | $ | 20,632 | $ | 20,335 | $ | 20,445 | |||||||||||
Preferred share dividends | 5,952 | 5,951 | 5,951 | 5,952 | 5,952 | 6,503 | |||||||||||||||||
Fixed charges | $ | 27,142 | $ | 27,367 | $ | 27,411 | $ | 26,584 | $ | 26,287 | $ | 26,948 | |||||||||||
Fixed charge coverage ratio | 2.8 | 2.8 | 2.7 | 2.8 | 2.7 | 2.7 | |||||||||||||||||
Debt Service Coverage Ratio (1): | |||||||||||||||||||||||
Interest coverage amount | $ | 76,877 | $ | 76,517 | $ | 74,975 | $ | 73,336 | $ | 70,490 | $ | 72,337 | |||||||||||
Interest expense, gross | $ | 21,190 | $ | 21,416 | $ | 21,460 | $ | 20,632 | $ | 20,335 | $ | 20,445 | |||||||||||
Recurring principal payments | 2,728 | 2,637 | 2,472 | 4,141 | 4,303 | 4,171 | |||||||||||||||||
Debt service | $ | 23,918 | $ | 24,053 | $ | 23,932 | $ | 24,773 | $ | 24,638 | $ | 24,616 | |||||||||||
Debt service coverage ratio | 3.2 | 3.2 | 3.1 | 3.0 | 2.9 | 2.9 | |||||||||||||||||
(1) See pages 29 through 30 for definitions. Amounts above include the impact of discontinued operations, which is separately classified in the income statement. |
EPR Properties | ||||||||||||||||||||||||
Reconciliation of Interest Coverage Amount to Net Cash Provided by Operating Activities | ||||||||||||||||||||||||
(Unaudited, dollars in thousands) | ||||||||||||||||||||||||
The interest coverage amount per the table on the previous page is a non-GAAP financial measure and should not be considered an alternative to any GAAP liquidity measures. It is most directly comparable to the GAAP liquidity measure, “Net cash provided by operating activities,” and is not directly comparable to the GAAP liquidity measures, “Net cash used in investing activities” and “Net cash provided by financing activities.” The interest coverage amount can be reconciled to “Net cash provided by operating activities” per the consolidated statements of cash flows as follows: | ||||||||||||||||||||||||
1st Quarter 2014 | 4th Quarter 2013 | 3rd Quarter 2013 | 2nd Quarter 2013 | 1st Quarter 2013 | 4th Quarter 2012 | |||||||||||||||||||
Net cash provided by operating activities | $ | 41,530 | $ | 75,745 | $ | 45,649 | $ | 72,554 | $ | 40,172 | $ | 62,002 | ||||||||||||
Equity in income from joint ventures | 311 | 230 | 351 | 466 | 351 | 358 | ||||||||||||||||||
Distributions from joint ventures | — | (355 | ) | (216 | ) | (191 | ) | (223 | ) | (219 | ) | |||||||||||||
Amortization of deferred financing costs | (1,015 | ) | (1,044 | ) | (1,010 | ) | (988 | ) | (999 | ) | (994 | ) | ||||||||||||
Amortization of above market leases, net | (48 | ) | (48 | ) | — | — | — | — | ||||||||||||||||
Increase (decrease) in mortgage notes and related accrued interest receivable | 107 | (783 | ) | 2,868 | (1,664 | ) | 36 | (419 | ) | |||||||||||||||
Increase (decrease) in restricted cash | 3,425 | 135 | (565 | ) | (10,234 | ) | (2,946 | ) | 3,984 | |||||||||||||||
Increase (decrease) in accounts receivable, net | (543 | ) | 2,540 | 1,539 | 1,480 | 339 | 3,149 | |||||||||||||||||
Increase in direct financing lease receivable | 694 | 1,222 | 1,186 | 1,240 | 1,212 | 1,234 | ||||||||||||||||||
Increase (decrease) in other assets | 2,039 | (1,172 | ) | (2,842 | ) | 1,810 | (139 | ) | (1,682 | ) | ||||||||||||||
Decrease (increase) in accounts payable and accrued liabilities | 18,151 | (17,159 | ) | 9,066 | (8,493 | ) | 10,520 | (11,276 | ) | |||||||||||||||
Decrease (increase) in unearned rents | (3,793 | ) | (2,952 | ) | (464 | ) | (2,167 | ) | 3,072 | (2,969 | ) | |||||||||||||
Straight-line rental revenue | (1,111 | ) | (1,575 | ) | (1,350 | ) | (707 | ) | (1,214 | ) | (927 | ) | ||||||||||||
Interest expense, gross | 21,190 | 21,416 | 21,460 | 20,632 | 20,335 | 20,445 | ||||||||||||||||||
Interest cost capitalized | (1,287 | ) | (779 | ) | (1,014 | ) | (626 | ) | (344 | ) | (380 | ) | ||||||||||||
Transaction costs (benefit) | (3,180 | ) | 1,096 | 317 | 224 | 318 | 31 | |||||||||||||||||
Deferred income tax expense | 407 | — | — | — | — | — | ||||||||||||||||||
Interest coverage amount (1) | $ | 76,877 | $ | 76,517 | $ | 74,975 | $ | 73,336 | $ | 70,490 | $ | 72,337 | ||||||||||||
(1) See pages 29 through 30 for definitions. Amounts above include the impact of discontinued operations, which is separately classified in the income statement. |
EPR Properties | ||||||||
Capital Spending and Disposition Summaries | ||||||||
(Unaudited, dollars in thousands) | ||||||||
2014 Capital Spending: | ||||||||
Description | Location | Operating Segment | Capital Spending Three Months Ended March 31, 2014 | |||||
Development of megaplex theatres | various | Entertainment | $ | 8,450 | ||||
Development of other entertainment and retail projects | various | Entertainment | 357 | |||||
Investment in note receivable secured by partnership interest in theatre operations | China | Entertainment | 1,486 | |||||
Investment in mortgage notes receivable for public charter schools | various | Education | 5,217 | |||||
Acquisition and development of early childhood education centers | various | Education | 15,197 | |||||
Development of public charter school properties | various | Education | 5,513 | |||||
Acquisition and development of private schools | various | Education | 10,332 | |||||
Improvements at Wisp ski resort | McHenry, MD | Recreation | 799 | |||||
Development of TopGolf golf entertainment facilities | various | Recreation | 19,896 | |||||
Investment in casino and resort project | Sullivan County, NY | Other | 1,209 | |||||
Total investment spending | $ | 68,456 | ||||||
Other capital acquisitions, net | various | 1,108 | ||||||
Total capital spending | $ | 69,564 | ||||||
2014 Dispositions: | ||||||||
Description | Location | Date of Disposition | Net Sales Proceeds | |||||
Sale of land adjacent to a public charter school investment | Queen Creek, AZ | January 2014 | $ | 915 | ||||
EPR Properties | ||||||||||||||||||||||||||||
Property Under Development - Investment Spending Estimates at March 31, 2014 (1) | ||||||||||||||||||||||||||||
(Unaudited, dollars in thousands) | ||||||||||||||||||||||||||||
March 31, 2014 | Owned Build-to-Suit Spending Estimates | |||||||||||||||||||||||||||
Property Under Development | # of Projects | 2nd Quarter 2014 | 3rd Quarter 2014 | 4th Quarter 2014 | 1st Quarter 2015 | Remainder 2015 | Total Expected Cost (2) | % Leased | ||||||||||||||||||||
Entertainment | $ | 21,287 | 6 | $ | 4,977 | $ | 9,346 | $ | 6,396 | $ | 7,401 | $ | 14,127 | $ | 63,534 | 100% | ||||||||||||
Education | 62,549 | 14 | 37,383 | 37,461 | 38,061 | 21,669 | 40,107 | 237,230 | 100% | |||||||||||||||||||
Recreation | 43,144 | 6 | 12,917 | 15,555 | 9,743 | 9,279 | 11,632 | 102,270 | 100% | |||||||||||||||||||
Total Build-to-Suit | 126,980 | 26 | $ | 55,277 | $ | 62,362 | $ | 54,200 | $ | 38,349 | $ | 65,866 | $ | 403,034 | ||||||||||||||
Non Build-to-Suit Development | 11,606 | |||||||||||||||||||||||||||
Total Property Under Development | $ | 138,586 | ||||||||||||||||||||||||||
March 31, 2014 | Owned Build-to-Suit In-Service Estimates | |||||||||||||||||||||||||||
# of Projects | 2nd Quarter 2014 | 3rd Quarter 2014 | 4th Quarter 2014 | 1st Quarter 2015 | Remainder 2015 | Total In-Service (2) | ||||||||||||||||||||||
Entertainment | 6 | $ | — | $ | 10,757 | $ | 19,279 | $ | 7,500 | $ | 25,998 | $ | 63,534 | |||||||||||||||
Education | 14 | 18,841 | 69,045 | 73,673 | — | 75,671 | 237,230 | |||||||||||||||||||||
Recreation | 6 | 52,900 | — | 29,500 | 19,870 | — | 102,270 | |||||||||||||||||||||
Total Build-to-Suit | 26 | $ | 71,741 | $ | 79,802 | $ | 122,452 | $ | 27,370 | $ | 101,669 | $ | 403,034 | |||||||||||||||
March 31, 2014 | Mortgage Build-to-Suit Spending Estimates | |||||||||||||||||||||||||||
Mortgage Notes Receivable | # of Projects | 2nd Quarter 2014 | 3rd Quarter 2014 | 4th Quarter 2014 | 1st Quarter 2015 | Remainder 2015 | Total Expected Cost (2) | |||||||||||||||||||||
Entertainment | $ | — | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Education | 7,870 | 1 | 2,337 | 1,710 | 570 | — | — | 12,487 | ||||||||||||||||||||
Recreation (3) | 1,139 | 1 | 13,000 | 37,500 | 37,500 | 20,838 | 798 | 110,775 | ||||||||||||||||||||
Total Build-to-Suit Mortgage Notes | 9,009 | 2 | $ | 15,337 | $ | 39,210 | $ | 38,070 | $ | 20,838 | $ | 798 | $ | 123,262 | ||||||||||||||
Non Build-to-Suit Mortgage Notes | 481,831 | |||||||||||||||||||||||||||
Total Mortgage Notes Receivable | $ | 490,840 | ||||||||||||||||||||||||||
(1) This schedule includes only those properties for which the Company has closed on a contract (lease or mortgage) and commenced construction as of March 31, 2014. | ||||||||||||||||||||||||||||
(2) "Total Expected Cost" and "Total In-Service" each reflect the total capital costs expected to be funded by the Company through completion (including capitalized interest or accrued interest as applicable). | ||||||||||||||||||||||||||||
(3) Certain of these mortgage agreements contain provisions that allow for a conversion to a lease structure. | ||||||||||||||||||||||||||||
Note: This schedule includes future estimates for which the Company can give no assurance as to timing or amounts. Development projects have risks. See Item 1A - "Risk Factors" in the Company's Annual Report on Form 10-K. |
EPR Properties | ||||||||||||||||||||||
Financial Information by Asset Type | ||||||||||||||||||||||
For the Three Months Ended March 31, 2014 | ||||||||||||||||||||||
(Unaudited, dollars in thousands) | ||||||||||||||||||||||
Entertainment | Education | Recreation | Other | Subtotal | Corporate/Unallocated | Consolidated | ||||||||||||||||
Rental revenue | $ | 56,822 | $ | 5,478 | $ | 3,846 | $ | 285 | $ | 66,431 | $ | — | $ | 66,431 | ||||||||
Tenant reimbursements | 4,588 | — | — | — | 4,588 | — | 4,588 | |||||||||||||||
Other income | 1 | — | — | — | 1 | 173 | 174 | |||||||||||||||
Mortgage and other financing income | 1,723 | 8,778 | 8,066 | 97 | 18,664 | — | 18,664 | |||||||||||||||
Total revenue | 63,134 | 14,256 | 11,912 | 382 | 89,684 | 173 | 89,857 | |||||||||||||||
Property operating expense | 6,273 | — | — | 176 | 6,449 | — | 6,449 | |||||||||||||||
Other expense | — | — | — | 98 | 98 | — | 98 | |||||||||||||||
Total investment expenses | 6,273 | — | — | 274 | 6,547 | — | 6,547 | |||||||||||||||
General and administrative expense | — | — | — | — | — | 7,462 | 7,462 | |||||||||||||||
Transaction costs | — | — | — | — | — | 196 | 196 | |||||||||||||||
EBITDA - continuing operations | $ | 56,861 | $ | 14,256 | $ | 11,912 | $ | 108 | $ | 83,137 | $ | (7,485 | ) | $ | 75,652 | |||||||
69 | % | 17 | % | 14 | % | — | % | 100 | % | |||||||||||||
Add: transaction costs | 196 | 196 | ||||||||||||||||||||
Adjusted EBITDA - continuing operations | 75,848 | |||||||||||||||||||||
Reconciliation to Consolidated Statements of Income: | ||||||||||||||||||||||
Interest expense, net | (19,899 | ) | (19,899 | ) | ||||||||||||||||||
Transaction costs | (196 | ) | (196 | ) | ||||||||||||||||||
Depreciation and amortization | (15,327 | ) | (15,327 | ) | ||||||||||||||||||
Equity in income from joint ventures | 311 | 311 | ||||||||||||||||||||
Gain on sale of land | 330 | 330 | ||||||||||||||||||||
Income tax expense | (925 | ) | (925 | ) | ||||||||||||||||||
Discontinued operations: | ||||||||||||||||||||||
Income from discontinued operations | 15 | 15 | ||||||||||||||||||||
Transaction (costs) benefit | 3,376 | 3,376 | ||||||||||||||||||||
Net income attributable to EPR Properties | 43,533 | |||||||||||||||||||||
Preferred dividend requirements | (5,952 | ) | (5,952 | ) | ||||||||||||||||||
Net income available to common shareholders of EPR Properties | $ | 37,581 | ||||||||||||||||||||
EPR Properties | ||||||||||||||||||||||
Financial Information by Asset Type | ||||||||||||||||||||||
For the Three Months Ended March 31, 2013 | ||||||||||||||||||||||
(Unaudited, dollars in thousands) | ||||||||||||||||||||||
Entertainment | Education | Recreation | Other | Subtotal | Corporate/Unallocated | Consolidated | ||||||||||||||||
Rental revenue | $ | 54,983 | $ | 3,157 | $ | 1,909 | $ | 339 | $ | 60,388 | $ | — | $ | 60,388 | ||||||||
Tenant reimbursements | 4,744 | — | — | — | 4,744 | — | 4,744 | |||||||||||||||
Other income | 23 | — | — | 1 | 24 | — | 24 | |||||||||||||||
Mortgage and other financing income | 2,204 | 7,957 | 7,555 | 79 | 17,795 | — | 17,795 | |||||||||||||||
Total revenue | 61,954 | 11,114 | 9,464 | 419 | 82,951 | — | 82,951 | |||||||||||||||
Property operating expense | 7,135 | — | — | (100 | ) | 7,035 | — | 7,035 | ||||||||||||||
Other expense | — | — | — | 96 | 96 | 53 | 149 | |||||||||||||||
Total investment expenses | 7,135 | — | — | (4 | ) | 7,131 | 53 | 7,184 | ||||||||||||||
General and administrative expense | — | — | — | — | — | 6,652 | 6,652 | |||||||||||||||
Transaction costs | — | — | — | — | — | 318 | 318 | |||||||||||||||
EBITDA - continuing operations | $ | 54,819 | $ | 11,114 | $ | 9,464 | $ | 423 | $ | 75,820 | $ | (7,023 | ) | $ | 68,797 | |||||||
72 | % | 15 | % | 12 | % | 1 | % | 100 | % | |||||||||||||
Add: transaction costs | 318 | 318 | ||||||||||||||||||||
Adjusted EBITDA - continuing operations | 69,115 | |||||||||||||||||||||
Reconciliation to Consolidated Statements of Income: | ||||||||||||||||||||||
Gain on early extinguishment of debt | 4,539 | 4,539 | ||||||||||||||||||||
Interest expense, net | (19,989 | ) | (19,989 | ) | ||||||||||||||||||
Transaction costs | (318 | ) | (318 | ) | ||||||||||||||||||
Depreciation and amortization | (12,822 | ) | (12,822 | ) | ||||||||||||||||||
Equity in income from joint ventures | 351 | 351 | ||||||||||||||||||||
Discontinued operations: | ||||||||||||||||||||||
Loss from discontinued operations | (235 | ) | (235 | ) | ||||||||||||||||||
Gain on sale of real estate | 565 | 565 | ||||||||||||||||||||
Net income attributable to EPR Properties | 41,206 | |||||||||||||||||||||
Preferred dividend requirements | (5,952 | ) | (5,952 | ) | ||||||||||||||||||
Net income available to common shareholders of EPR Properties | $ | 35,254 |
EPR Properties | ||||||||||
Financial Information by Segment - Discontinued Operations | ||||||||||
(Unaudited, dollars in thousands) | ||||||||||
For the Three Months Ended March 31, 2014 | ||||||||||
Entertainment (1) | Other (2) | Consolidated | ||||||||
Rental revenue | $ | 3 | $ | — | $ | 3 | ||||
Total revenue | 3 | — | 3 | |||||||
Property operating expense | 6 | — | 6 | |||||||
Other expense (benefit) | — | (18 | ) | (18 | ) | |||||
Total investment expenses | 6 | (18 | ) | (12 | ) | |||||
Transaction costs (benefit) | (3,376 | ) | — | (3,376 | ) | |||||
EBITDA - discontinued operations | $ | 3,373 | $ | 18 | $ | 3,391 | ||||
Add: transaction costs (benefit) | (3,376 | ) | ||||||||
Adjusted EBITDA - discontinued operations | $ | 15 | ||||||||
Reconciliation to Consolidated Statements of Income: | ||||||||||
Transaction costs (benefit) | 3,376 | |||||||||
Income from discontinued operations | $ | 3,391 | ||||||||
For the Three Months Ended March 31, 2013 | ||||||||||
Entertainment (1) | Other (2) | Consolidated | ||||||||
Rental revenue | $ | — | $ | 746 | $ | 746 | ||||
Total revenue | — | 746 | 746 | |||||||
Property operating expense (benefit) | 21 | (30 | ) | (9 | ) | |||||
Other expense | — | 67 | 67 | |||||||
Total investment expenses | 21 | 37 | 58 | |||||||
EBITDA and Adjusted EBITDA- discontinued operations | $ | (21 | ) | $ | 709 | $ | 688 | |||
Reconciliation to Consolidated Statements of Income: | ||||||||||
Depreciation and amortization | (923 | ) | ||||||||
Gain on sale or acquisition of real estate, net | 565 | |||||||||
Loss from discontinued operations | $ | 330 |
EPR Properties | ||||||||||||||||
Investment Information by Asset Type | ||||||||||||||||
As of March 31, 2014 and December 31, 2013 | ||||||||||||||||
(Unaudited, dollars in thousands) | ||||||||||||||||
As of March 31, 2014 | ||||||||||||||||
Entertainment | Education | Recreation | Other | Consolidated | ||||||||||||
Rental properties, net of accumulated depreciation | $ | 1,736,671 | $ | 193,294 | $ | 152,460 | $ | 7,508 | $ | 2,089,933 | ||||||
Add back accumulated depreciation on rental properties | 406,721 | 6,286 | 6,874 | 2,582 | 422,463 | |||||||||||
Land held for development | 4,457 | — | — | 198,095 | 202,552 | |||||||||||
Property under development | 32,335 | 63,107 | 43,144 | — | 138,586 | |||||||||||
Mortgage notes and related accrued interest receivable, net | 58,220 | 61,027 | 366,561 | 5,032 | 490,840 | |||||||||||
Investment in a direct financing lease, net | — | 242,905 | — | — | 242,905 | |||||||||||
Investment in joint ventures | 5,586 | — | — | — | 5,586 | |||||||||||
Intangible assets, gross (1) | 17,922 | — | — | — | 17,922 | |||||||||||
Notes receivable and related accrued interest receivable, net (1) | 1,508 | 5,814 | — | — | 7,322 | |||||||||||
Total investments (2) | $ | 2,263,420 | $ | 572,433 | $ | 569,039 | $ | 213,217 | $ | 3,618,109 | ||||||
% of total investments | 63 | % | 16 | % | 16 | % | 5 | % | 100 | % | ||||||
As of December 31, 2013 | ||||||||||||||||
Entertainment | Education | Recreation | Other | Consolidated | ||||||||||||
Rental properties, net of accumulated depreciation | $ | 1,755,433 | $ | 188,387 | $ | 152,694 | $ | 7,637 | $ | 2,104,151 | ||||||
Add back accumulated depreciation on rental properties | 396,705 | 4,985 | 5,500 | 2,453 | 409,643 | |||||||||||
Land held for development | 4,457 | — | — | 196,885 | 201,342 | |||||||||||
Property under development | 23,686 | 40,821 | 24,966 | — | 89,473 | |||||||||||
Mortgage notes and related accrued interest receivable, net | 58,220 | 56,505 | 366,580 | 5,032 | 486,337 | |||||||||||
Investment in a direct financing lease, net | — | 242,212 | — | — | 242,212 | |||||||||||
Investment in joint ventures | 5,275 | — | — | — | 5,275 | |||||||||||
Intangible assets, gross (1) | 18,444 | — | — | — | 18,444 | |||||||||||
Notes receivable and related accrued interest receivable, net (1) | — | 4,992 | — | — | 4,992 | |||||||||||
Total investments (2) | $ | 2,262,220 | $ | 537,902 | $ | 549,740 | $ | 212,007 | $ | 3,561,869 | ||||||
% of total investments | 64 | % | 15 | % | 15 | % | 6 | % | 100 | % | ||||||
(1) Included in other assets in the consolidated balance sheets as of March 31, 2014 and December 31, 2013 in the Company's Quarterly Report on Form 10-Q. Reconciliation is as follows: | ||||||||||||||||
3/31/2014 | 12/31/2013 | |||||||||||||||
Intangible assets, gross | $ | 17,922 | $ | 18,444 | ||||||||||||
Less: accumulated amortization on intangible assets | (11,586 | ) | (11,633 | ) | ||||||||||||
Notes receivable and related accrued interest receivable, net | 7,322 | 4,992 | ||||||||||||||
Prepaid expenses and other current assets | 50,685 | 48,129 | ||||||||||||||
Total other assets | $ | 64,343 | $ | 59,932 | ||||||||||||
(2) See pages 29 and 30 for definitions. |
EPR Properties | |||||||||||||||||||
Lease Expirations | |||||||||||||||||||
As of March 31, 2014 | |||||||||||||||||||
(Unaudited, dollars in thousands) | |||||||||||||||||||
Megaplex Theatres | Public Charter Schools | ||||||||||||||||||
Year | Total Number of Properties | Rental Revenue for the Trailing Twelve Months Ended March 31, 2014 (1) | % of Total Revenue | Total Number of Properties | Financing Income/Rental Revenue for the Trailing Twelve Months Ended March 31, 2014 | % of Total Revenue | |||||||||||||
2014 | — | $ | — | — | — | $ | — | — | |||||||||||
2015 | 3 | 9,657 | 3 | % | — | — | — | ||||||||||||
2016 | 4 | 9,386 | 3 | % | — | — | — | ||||||||||||
2017 | 4 | 7,397 | 2 | % | 1 | 710 | — | % | |||||||||||
2018 | 19 | 31,818 | 9 | % | — | — | — | ||||||||||||
2019 | 8 | 23,195 | 7 | % | — | — | — | ||||||||||||
2020 | 7 | 9,150 | 2 | % | — | — | — | ||||||||||||
2021 | 6 | 10,031 | 3 | % | — | — | — | ||||||||||||
2022 | 12 | 22,201 | 6 | % | — | — | — | ||||||||||||
2023 | 5 | 10,434 | 3 | % | — | — | — | ||||||||||||
2024 | 10 | 16,828 | 5 | % | — | — | — | ||||||||||||
2025 | 6 | 12,495 | 4 | % | — | — | — | ||||||||||||
2026 | 4 | 5,671 | 1 | % | — | — | — | ||||||||||||
2027 | 2 | 3,384 | 1 | % | — | — | — | ||||||||||||
2028 | 2 | 1,504 | — | % | — | — | — | ||||||||||||
2029 | 15 | (2) | 14,125 | 4 | % | — | — | — | |||||||||||
2030 | — | — | — | — | — | — | |||||||||||||
2031 | 4 | 3,772 | 1 | % | 11 | (4) | 10,135 | 3 | % | ||||||||||
2032 | 3 | (3) | 2,039 | 1 | % | 13 | (5) | 14,315 | 4 | % | |||||||||
2033 | 6 | 2,787 | 1 | % | 18 | (6) | 14,718 | 4 | % | ||||||||||
Thereafter | 1 | 59 | — | 7 | 7,041 | 2 | % | ||||||||||||
121 | $ | 195,933 | 56 | % | 50 | $ | 46,919 | 13 | % | ||||||||||
Note: This schedule relates to consolidated megaplex theatres and public charter schools only, which together represent approximately 69% of total revenue for the trailing twelve months ended March 31, 2014. This schedule excludes properties under construction. | |||||||||||||||||||
(1) Consists of rental revenue and tenant reimbursements. | |||||||||||||||||||
(2) All of these theatre properties are leased under a master lease. | |||||||||||||||||||
(3) All of these threatre properties are leased under a master lease. | |||||||||||||||||||
(4) Five of these public charter school properties are leased under a master lease to Imagine. | |||||||||||||||||||
(5) Six of these public charter school properties are leased under a master lease to Imagine. | |||||||||||||||||||
(6) Sixteen of these public charter school properties are leased under a master lease to Imagine. |
EPR Properties | |||||||
Top Ten Customers by Revenue from Continuing Operations | |||||||
(Unaudited, dollars in thousands) | |||||||
Total Revenue For The | |||||||
Three Months Ended | Percentage of | ||||||
Customers | Asset Type | March 31, 2014 | Total Revenue | ||||
1. | American Multi-Cinema, Inc. | Entertainment | $ | 21,745 | 24% | ||
2. | Cinemark USA, Inc. | Entertainment | 8,281 | 9% | |||
3. | Imagine Schools, Inc. | Education | 7,301 | 8% | |||
4. | Regal Cinemas, Inc. | Entertainment | 6,912 | 8% | |||
5. | Peak Resorts, Inc. | Recreation | 4,691 | 5% | |||
6. | Carmike Cinemas, Inc. | Entertainment | 4,241 | 5% | |||
7. | SVVI, LLC | Recreation | 3,308 | 4% | |||
8. | Southern Theatres, LLC | Entertainment | 3,014 | 3% | |||
9. | Landmark Cinemas | Entertainment | 1,898 | 2% | |||
10. | Cineplex, Inc. | Entertainment | 1,811 | 2% | |||
Total | $ | 63,202 | 70% |
EPR Properties | ||||||||
Summary of Mortgage Notes Receivable | ||||||||
(Unaudited, dollars in thousands) | ||||||||
Summary of Mortgage Notes Receivable | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
Mortgage note, 9.00%, due June 19, 2014 | $ | 1,063 | $ | — | ||||
Mortgage note, 10.00%, due April 1, 2016 | 42,907 | 42,907 | ||||||
Mortgage note receivable and related accrued interest receivable, 5.50%, due November 1, 2016 | 2,511 | 2,511 | ||||||
Mortgage note and related accrued interest receivable, 10.00%, due November 1, 2017 | 2,521 | 2,521 | ||||||
Mortgage notes, 7.00% and 10.00%, due May 1, 2019 | 183,465 | 183,465 | ||||||
Mortgage note and related accrued interest receivable, 10.00%, due November 1, 2020 | 1,139 | 1,112 | ||||||
Mortgage note, 10.11%, due March 10, 2027 | 10,972 | 10,972 | ||||||
Mortgage notes, 10.77%, due April 3, 2027 | 63,500 | 63,500 | ||||||
Mortgage note, 9.98%, due October 30, 2027 | 47,029 | 47,029 | ||||||
Mortgage note and related accrued interest receivable, 10.65%, due June 28, 2032 | 36,032 | 36,032 | ||||||
Mortgage note and related accrued interest receivable, 9.50%, due September 1, 2032 | 19,692 | 19,659 | ||||||
Mortgage note and related accrued interest receivable, 10.25%, due October 31, 2032 | 22,188 | 22,188 | ||||||
Mortgage note, 10.20%, due December 19, 2032 | 4,509 | 4,509 | ||||||
Mortgage note and related accrued interest receivable, 9.00%, due December 31, 2032 | 5,688 | 5,717 | ||||||
Mortgage note and related accrued interest receivable, 9.50%, due January 31, 2033 | 7,870 | 6,872 | ||||||
Mortgage notes and related accrued interest receivable, 9.50%, due April 30, 2033 | 23,255 | 20,802 | ||||||
Mortgage note and related accrued interest receivable, 10.25%, due June 30, 2033 | 3,459 | 3,455 | ||||||
Mortgage note, 11.31%, due July 1, 2033 | 13,040 | 13,086 | ||||||
Total mortgage notes and related accrued interest receivable | $ | 490,840 | $ | 486,337 | ||||
Payments Due on Mortgage Notes Receivable | ||||||||
As of March 31, 2014 | ||||||||
Year: | ||||||||
2014 | $ | 1,804 | ||||||
2015 | 878 | |||||||
2016 | 46,297 | |||||||
2017 | 1,154 | |||||||
2018 | 168 | |||||||
Thereafter | 440,539 | |||||||
Total | $ | 490,840 | ||||||
EPR Properties | ||||||||
Summary of Notes Receivable | ||||||||
(Unaudited, dollars in thousands) | ||||||||
Summary of Notes Receivable (1) | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
Note and related accrued interest receivable, 10.00%, | ||||||||
due July 19, 2014 | $ | 2,038 | $ | 1,300 | ||||
Note and related accrued interest receivable, 9.23%, | ||||||||
due August 31, 2015 | 3,776 | 3,692 | ||||||
Note and related accrued interest receivable, 12.50%, | ||||||||
due March 1, 2024 | 1,508 | — | ||||||
Total notes and related accrued interest receivable | $ | 7,322 | $ | 4,992 | ||||
(1) Included in other assets in the consolidated balance sheets as of March 31, 2014 and December 31, 2013 in the Company's Quarterly Report on Form 10-Q. | ||||||||
Payments due on Notes Receivable | ||||||||
As of March 31, 2014 | ||||||||
Year: | ||||||||
2014 | $ | 2,233 | ||||||
2015 | 3,581 | |||||||
2016 | — | |||||||
2017 | — | |||||||
2018 | — | |||||||
Thereafter | 1,508 | |||||||
Total | $ | 7,322 |
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