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Condensed Consolidating Financial Statements
3 Months Ended
Mar. 31, 2016
Condensed Consolidating Financial Statements [Abstract]  
Condensed Consolidating Financial Statements
Condensed Consolidating Financial Statements

A portion of the Company's subsidiaries have guaranteed the Company’s indebtedness under the Company's unsecured senior notes and combined unsecured revolving credit and term loan facility. The guarantees are joint and several, full and unconditional and subject to customary release provisions. The following summarizes the Company’s condensed consolidating information as of March 31, 2016 and December 31, 2015 and for the three months ended March 31, 2016 and 2015 (in thousands):
Condensed Consolidating Balance Sheet
As of March 31, 2016
 
EPR Properties 
(Issuer)
 
Wholly  Owned
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Consolidated
Elimination
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Rental properties, net
$

 
$
2,515,063

 
$
699,284

 
$

 
$
3,214,347

Land held for development

 
1,258

 
21,272

 

 
22,530

Property under development

 
185,424

 
81,150

 

 
266,574

Mortgage notes and related accrued interest receivable

 
454,729

 
2,700

 

 
457,429

Investment in a direct financing lease, net

 
191,720

 

 

 
191,720

Investment in joint ventures

 

 
5,869

 

 
5,869

Cash and cash equivalents
7,519

 
753

 
2,708

 

 
10,980

Restricted cash
525

 
20,803

 
2,100

 

 
23,428

Accounts receivable, net
298

 
50,003

 
12,102

 

 
62,403

Intercompany notes receivable

 
175,757

 

 
(175,757
)
 

Investments in subsidiaries
3,946,482

 

 

 
(3,946,482
)
 

Other assets
23,002

 
11,337

 
53,921

 

 
88,260

Total assets
$
3,977,826

 
$
3,606,847

 
$
881,106

 
$
(4,122,239
)
 
$
4,343,540

Liabilities and Equity
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
$
39,918

 
$
33,742

 
$
3,863

 
$

 
$
77,523

Dividends payable
26,221

 

 

 

 
26,221

Unearned rents and interest

 
48,316

 
8,311

 

 
56,627

Intercompany notes payable

 

 
175,757

 
(175,757
)
 

Debt
1,724,649

 

 
271,482

 

 
1,996,131

Total liabilities
1,790,788

 
82,058

 
459,413

 
(175,757
)
 
2,156,502

Total equity
$
2,187,038

 
$
3,524,789

 
$
421,693

 
$
(3,946,482
)
 
$
2,187,038

Total liabilities and equity
$
3,977,826

 
$
3,606,847

 
$
881,106

 
$
(4,122,239
)
 
$
4,343,540

 
Condensed Consolidating Balance Sheet
As of December 31, 2015
 
EPR
Properties 
(Issuer)
 
Wholly  Owned
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Consolidated
Elimination
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Rental properties, net
$

 
$
2,485,411

 
$
539,788

 
$

 
$
3,025,199

Land held for development

 
1,258

 
22,352

 

 
23,610

Property under development

 
152,197

 
226,723

 

 
378,920

Mortgage notes and related accrued interest receivable, net

 
400,935

 
22,845

 

 
423,780

Investment in a direct financing lease, net

 
190,880

 

 

 
190,880

Investment in joint ventures

 

 
6,168

 

 
6,168

Cash and cash equivalents
1,089

 
735

 
2,459

 

 
4,283

Restricted cash
475

 
8,220

 
1,883

 

 
10,578

Accounts receivable, net
285

 
47,502

 
11,314

 

 
59,101

Intercompany notes receivable

 
175,757

 

 
(175,757
)
 

Investments in subsidiaries
3,825,897

 

 

 
(3,825,897
)
 

Other assets
23,053

 
10,607

 
61,091

 

 
94,751

Total assets
$
3,850,799

 
$
3,473,502

 
$
894,623

 
$
(4,001,654
)
 
$
4,217,270

Liabilities and Equity
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable and accrued liabilities
$
49,671

 
$
38,759

 
$
3,748

 
$

 
$
92,178

Dividends payable
24,352

 

 

 

 
24,352

Unearned rents and interest

 
35,512

 
9,440

 

 
44,952

Intercompany notes payable

 

 
175,757

 
(175,757
)
 

Debt
1,702,908

 

 
279,012

 

 
1,981,920

Total liabilities
1,776,931

 
74,271

 
467,957

 
(175,757
)
 
2,143,402

Total equity
$
2,073,868

 
$
3,399,231

 
$
426,666

 
$
(3,825,897
)
 
$
2,073,868

Total liabilities and equity
$
3,850,799

 
$
3,473,502

 
$
894,623

 
$
(4,001,654
)
 
$
4,217,270

 


Condensed Consolidating Statement of Income
Three Months Ended March 31, 2016
 
EPR Properties 
(Issuer)
 
Wholly  Owned
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Consolidated
Elimination
 
Consolidated
Rental revenue
$

 
$
74,001

 
$
19,777

 
$

 
$
93,778

Tenant reimbursements

 
1,349

 
2,516

 

 
3,865

Other income

 
491

 
719

 

 
1,210

Mortgage and other financing income
212

 
16,019

 
3,684

 

 
19,915

Intercompany fee income
653

 

 

 
(653
)
 

Interest income on intercompany notes receivable

 
2,336

 

 
(2,336
)
 

Total revenue
865

 
94,196

 
26,696

 
(2,989
)
 
118,768

Equity in subsidiaries’ earnings
76,787

 

 

 
(76,787
)
 

Property operating expense

 
2,570

 
2,911

 

 
5,481

Intercompany fee expense

 

 
653

 
(653
)
 

Other expense

 

 
5

 

 
5

General and administrative expense

 
7,178

 
2,040

 

 
9,218

Costs associated with loan refinancing or payoff

 

 
552

 

 
552

Interest expense, net
22,190

 
(1,833
)
 
2,932

 

 
23,289

Interest expense on intercompany notes payable

 

 
2,336

 
(2,336
)
 

Transaction costs
443

 

 
1

 

 
444

Depreciation and amortization
443

 
21,391

 
4,121

 

 
25,955

Income before equity in income from joint ventures and other items
54,576

 
64,890

 
11,145

 
(76,787
)
 
53,824

Equity in income from joint ventures

 

 
212

 

 
212

Income before income taxes
54,576

 
64,890

 
11,357

 
(76,787
)
 
54,036

Income tax benefit (expense)
(396
)
 

 
540

 

 
144

Net income attributable to EPR Properties
54,180

 
64,890

 
11,897

 
(76,787
)
 
54,180

Preferred dividend requirements
(5,952
)
 

 

 

 
(5,952
)
Net income available to common shareholders of EPR Properties
$
48,228

 
$
64,890

 
$
11,897

 
$
(76,787
)
 
$
48,228

Comprehensive income attributable to EPR Properties
$
52,266

 
$
64,890

 
$
13,526

 
$
(78,416
)
 
$
52,266

 
Condensed Consolidating Statement of Income
Three Months Ended March 31, 2015
 
EPR
Properties 
(Issuer)
 
Wholly  Owned
Subsidiary
Guarantors
 
Non-
Guarantor
Subsidiaries
 
Consolidated
Elimination
 
Consolidated
Rental revenue
$

 
$
57,810

 
$
18,930

 
$

 
$
76,740

Tenant reimbursements

 
1,410

 
2,893

 

 
4,303

Other income

 
2

 
548

 

 
550

Mortgage and other financing income
212

 
15,128

 
2,503

 

 
17,843

Intercompany fee income
689

 

 

 
(689
)
 

Interest income on intercompany notes receivable
111

 
2,391

 

 
(2,502
)
 

Total revenue
1,012

 
76,741

 
24,874

 
(3,191
)
 
99,436

Equity in subsidiaries’ earnings
78,995

 

 

 
(78,995
)
 

Property operating expense

 
3,153

 
3,204

 

 
6,357

Intercompany fee expense

 

 
689

 
(689
)
 

Other expense

 

 
102

 

 
102

General and administrative expense

 
5,781

 
1,901

 

 
7,682

Retirement severance expense
18,578

 

 

 

 
18,578

Interest expense, net
16,360

 
287

 
1,940

 

 
18,587

Interest expense on intercompany notes payable

 

 
2,502

 
(2,502
)
 

Transaction costs
1,354

 

 
252

 

 
1,606

Depreciation and amortization
390

 
14,940

 
4,025

 

 
19,355

Income before equity in income from joint ventures and other items
43,325

 
52,580

 
10,259

 
(78,995
)
 
27,169

Equity in income from joint ventures

 

 
164

 

 
164

Gain on sale of real estate

 
23,748

 
176

 

 
23,924

Income before income taxes
43,325

 
76,328

 
10,599

 
(78,995
)
 
51,257

Income tax expense
504

 

 
7,922

 

 
8,426

Income from continuing operations
42,821

 
76,328

 
2,677

 
(78,995
)
 
42,831

Discontinued operations:
 
 
 
 
 
 
 
 
 
Loss from discontinued operations

 
(10
)
 

 

 
(10
)
Net income attributable to EPR Properties
42,821

 
76,318

 
2,677

 
(78,995
)
 
42,821

Preferred dividend requirements
(5,952
)
 

 

 

 
(5,952
)
Net income available to common shareholders of EPR Properties
$
36,869

 
$
76,318

 
$
2,677

 
$
(78,995
)
 
$
36,869

Comprehensive income attributable to EPR Properties
$
38,966

 
$
76,271

 
$
(72
)
 
$
(76,199
)
 
$
38,966









Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2016
 
EPR
Properties 
(Issuer)
 
Wholly  Owned
Subsidiary
Guarantors
 
Non-Guarantor
Subsidiaries
 
Consolidated
Intercompany fee income (expense)
$
653

 
$

 
$
(653
)
 
$

Interest income (expense) on intercompany receivable/payable

 
2,336

 
(2,336
)
 

Net cash provided (used) by other operating activities
(31,258
)
 
82,581

 
17,754

 
69,077

Net cash provided (used) by operating activities
(30,605
)
 
84,917

 
14,765

 
69,077

Investing activities:
 
 
 
 
 
 

Acquisition of rental properties and other assets
(66
)
 
(36,771
)
 
(70
)
 
(36,907
)
Proceeds from sale of real estate

 

 
1,920

 
1,920

Investment in mortgage notes receivable

 
(53,659
)
 

 
(53,659
)
Proceeds from mortgage note receivable paydown

 
176

 
19,320

 
19,496

Additions to property under development

 
(53,161
)
 
(8,604
)
 
(61,765
)
Advances to subsidiaries, net
(39,404
)
 
58,516

 
(19,112
)
 

Net cash used by investing activities
(39,470
)
 
(84,899
)
 
(6,546
)
 
(130,915
)
Financing activities:
 
 
 
 
 
 
 
Proceeds from long-term debt facilities
162,000

 

 

 
162,000

Principal payments on long-term debt
(141,000
)
 

 
(7,586
)
 
(148,586
)
Deferred financing fees paid
(28
)
 

 
(8
)
 
(36
)
Costs associated with loan refinancing or payoff (cash portion)

 

 
(472
)
 
(472
)
Net proceeds from issuance of common shares
125,199

 

 

 
125,199

Impact of stock option exercises, net
(635
)
 

 

 
(635
)
Purchase of common shares for treasury for vesting
(4,208
)
 

 

 
(4,208
)
Dividends paid to shareholders
(64,823
)
 

 

 
(64,823
)
Net cash provided (used) by financing activities
76,505

 

 
(8,066
)
 
68,439

Effect of exchange rate changes on cash

 

 
96

 
96

Net increase in cash and cash equivalents
6,430

 
18

 
249

 
6,697

Cash and cash equivalents at beginning of the period
1,089

 
735

 
2,459

 
4,283

Cash and cash equivalents at end of the period
$
7,519

 
$
753

 
$
2,708

 
$
10,980


 





Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2015
 
EPR
Properties 
(Issuer)
 
Wholly  Owned
Subsidiary
Guarantors
 
Non-Guarantor
Subsidiaries
 
Consolidated
Intercompany fee income (expense)
$
689

 
$

 
$
(689
)
 
$

Interest income (expense) on intercompany receivable/payable
111

 
2,391

 
(2,502
)
 

Net cash provided (used) by other operating activities
(33,933
)
 
74,509

 
16,487

 
57,063

Net cash provided (used) by operating activities of continuing operations
(33,133
)
 
76,900

 
13,296

 
57,063

Net cash provided by operating activities of discontinued operations

 
455

 

 
455

Net cash provided (used) by operating activities
(33,133
)
 
77,355

 
13,296

 
57,518

Investing activities:
 
 
 
 
 
 

Acquisition of rental properties and other assets
(86
)
 
(49,116
)
 
(5
)
 
(49,207
)
Proceeds from sale of real estate

 
42,709

 
1,081

 
43,790

Investment in mortgage note receivable

 
(3,121
)
 
(15,577
)
 
(18,698
)
Proceeds from mortgage note receivable paydown

 
148

 

 
148

Additions to property under development

 
(64,729
)
 
(4,466
)
 
(69,195
)
Advances to subsidiaries, net
(100,872
)
 
90,515

 
10,357

 

Net cash provided (used) by investing activities
(100,958
)
 
16,406

 
(8,610
)
 
(93,162
)
Financing activities:
 
 
 
 
 
 
 
Proceeds from long-term debt facilities
298,914

 
155,000

 

 
453,914

Principal payments on long-term debt

 
(248,181
)
 
(2,919
)
 
(251,100
)
Deferred financing fees paid
(2,884
)
 
6

 

 
(2,878
)
Net proceeds from issuance of common shares
123

 

 

 
123

Impact of stock option exercises, net
(33
)
 

 

 
(33
)
Purchase of common shares for treasury for vesting
(8,222
)
 

 

 
(8,222
)
Dividends paid to shareholders
(56,796
)
 

 

 
(56,796
)
Net cash provided (used) by financing activities
231,102

 
(93,175
)
 
(2,919
)
 
135,008

Effect of exchange rate changes on cash

 
(15
)
 
(479
)
 
(494
)
Net increase in cash and cash equivalents
97,011

 
571

 
1,288

 
98,870

Cash and cash equivalents at beginning of the period
(1,234
)
 
840

 
3,730

 
3,336

Cash and cash equivalents at end of the period
$
95,777

 
$
1,411

 
$
5,018

 
$
102,206