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 June 30, 2016 and December 31, 2015 and for the three and six months ended June 30, 2016 and 2015 (in thousands):

Condensed Consolidating Balance Sheet As of June 30, 2016

	EPR Properties (Issuer)		Wholly Owned Subsidiary Guarantors		Non- Guarantor Subsidiaries		Consolidated Elimination			Consolidated
Assets
Rental properties, net	$	—	$	2,851,873	$	479,908	$	—		$	3,331,781
Land held for development	—		1,258		21,272		—			22,530
Property under development	25		258,473		43,107		—			301,605
Mortgage notes and related accrued interest receivable	—		422,175		2,700		—			424,875
Investment in a direct financing lease, net	—		188,386		—		—			188,386
Investment in joint ventures	—		—		5,955		—			5,955
Cash and cash equivalents	4,574		927		2,961		—			8,462
Restricted cash	460		14,640		1,514		—			16,614
Accounts receivable, net	424		51,356		10,281		—			62,061
Intercompany notes receivable	—		175,757		—		(175,757		)	—
Investments in subsidiaries	4,099,500		—		—		(4,099,500		)	—
Other assets	23,234		20,920		53,801		—			97,955
Total assets	$	4,128,217	$	3,985,765	$	621,499	$	(4,275,257	)	$	4,460,224
Liabilities and Equity
Liabilities:
Accounts payable and accrued liabilities	$	51,919	$	35,930	$	3,281	$	—		$	91,130
Dividends payable	26,312		—		—		—			26,312
Unearned rents and interest	—		49,040		758		—			49,798
Intercompany notes payable	—		—		175,757		(175,757		)	—
Debt	1,855,267		—		242,998		—			2,098,265
Total liabilities	1,933,498		84,970		422,794		(175,757		)	2,265,505
Total equity	2,194,719		3,900,795		198,705		(4,099,500		)	2,194,719
Total liabilities and equity	$	4,128,217	$	3,985,765	$	621,499	$	(4,275,257	)	$	4,460,224

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	$	—	$	2,546,267	$	478,932	$	—		$	3,025,199
Land held for development	—		1,258		22,352		—			23,610
Property under development	—		324,360		54,560		—			378,920
Mortgage notes and related accrued interest receivable	—		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		946		2,248		—			4,283
Restricted cash	475		8,571		1,532		—			10,578
Accounts receivable, net	285		47,921		10,895		—			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	$	3,707,502	$	660,623	$	(4,001,654	)	$	4,217,270
Liabilities and Equity
Liabilities:
Accounts payable and accrued liabilities	$	49,671	$	39,033	$	3,474	$	—		$	92,178
Dividends payable	24,352		—		—		—			24,352
Unearned rents and interest	—		44,012		940		—			44,952
Intercompany notes payable	—		—		175,757		(175,757		)	—
Debt	1,702,908		24,742		254,270		—			1,981,920
Total liabilities	1,776,931		107,787		434,441		(175,757		)	2,143,402
Total equity	2,073,868		3,599,715		226,182		(3,825,897		)	2,073,868
Total liabilities and equity	$	3,850,799	$	3,707,502	$	660,623	$	(4,001,654	)	$	4,217,270

Condensed Consolidating Statement of Income Three Months Ended June 30, 2016

	EPR Properties (Issuer)			Wholly Owned Subsidiary Guarantors			Non- Guarantor Subsidiaries			Consolidated Elimination			Consolidated
Rental revenue	$	—		$	80,658		$	15,397		$	—		$	96,055
Tenant reimbursements	—			1,372			2,519			—			3,891
Other income	—			1,329			797			—			2,126
Mortgage and other financing income	212			15,659			90			—			15,961
Intercompany fee income	688			—			—			(688		)	—
Interest income on intercompany notes receivable	—			2,453			—			(2,453		)	—
Total revenue	900			101,471			18,803			(3,141		)	118,033
Equity in subsidiaries’ earnings	78,883			—			—			(78,883		)	—
Property operating expense	—			2,554			3,026			—			5,580
Intercompany fee expense	—			—			688			(688		)	—
General and administrative expense	—			7,588			1,412			—			9,000
Costs associated with loan refinancing or payoff	—			339			—			—			339
Interest expense, net	22,437			(2,553		)	2,872			—			22,756
Interest expense on intercompany notes payable	—			—			2,453			(2,453		)	—
Transaction costs	1,394			—			96			—			1,490
Depreciation and amortization	446			21,397			3,823			—			25,666
Income before equity in income from joint ventures and other items	55,506			72,146			4,433			(78,883		)	53,202
Equity in income from joint ventures	—			—			86			—			86
Gain on sale of real estate	—			2,270			—			—			2,270
Income before income taxes	55,506			74,416			4,519			(78,883		)	55,558
Income tax expense	(371		)	—			(52		)	—			(423		)
Net income attributable to EPR Properties	55,135			74,416			4,467			(78,883		)	55,135
Preferred dividend requirements	(5,952		)	—			—			—			(5,952		)
Net income available to common shareholders of EPR Properties	$	49,183		$	74,416		$	4,467		$	(78,883	)	$	49,183
Comprehensive income attributable to EPR Properties	$	54,912		$	74,416		$	4,673		$	(79,089	)	$	54,912

Condensed Consolidating Statement of Income Three Months Ended June 30, 2015

	EPR Properties (Issuer)			Wholly Owned Subsidiary Guarantors			Non- Guarantor Subsidiaries		Consolidated Elimination			Consolidated
Rental revenue	$	—		$	61,970		$	15,890	$	—		$	77,860
Tenant reimbursements	—			1,265			2,700		—			3,965
Other income	—			1			1,147		—			1,148
Mortgage and other financing income	212			15,175			2,898		—			18,285
Intercompany fee income	708			—			—		(708		)	—
Interest income on intercompany notes receivable	—			2,558			—		(2,558		)	—
Total revenue	920			80,969			22,635		(3,266		)	101,258
Equity in subsidiaries’ earnings	73,172			—			—		(73,172		)	—
Property operating expense	—			2,702			3,068		—			5,770
Intercompany fee expense	—			—			708		(708		)	—
Other expense	—			—			210		—			210
General and administrative expense	—			6,037			1,719		—			7,756
Costs associated with loan refinancing or payoff	243			—			—		—			243
Interest expense, net	19,824			(2,884		)	3,067		—			20,007
Interest expense on intercompany notes payable	—			—			2,558		(2,558		)	—
Transaction costs	4,238			—			191		—			4,429
Depreciation and amortization	386			17,859			3,604		—			21,849
Income before equity in income from joint ventures and other items	49,401			57,255			7,510		(73,172		)	40,994
Equity in income from joint ventures	—			—			198		—			198
Income before income taxes	49,401			57,255			7,708		(73,172		)	41,192
Income tax benefit (expense)	(635		)	—			8,141		—			7,506
Income from continuing operations	48,766			57,255			15,849		(73,172		)	48,698
Discontinued operations:
Income from discontinued operations	—			68			—		—			68
Net income attributable to EPR Properties	48,766			57,323			15,849		(73,172		)	48,766
Preferred dividend requirements	(5,952		)	—			—		—			(5,952		)
Net income available to common shareholders of EPR Properties	$	42,814		$	57,323		$	15,849	$	(73,172	)	$	42,814
Comprehensive income attributable to EPR Properties	$	48,344		$	57,323		$	15,270	$	(72,593	)	$	48,344

Condensed Consolidating Statement of Income Six Months Ended June 30, 2016

	EPR Properties (Issuer)			Wholly Owned Subsidiary Guarantors			Non- Guarantor Subsidiaries		Consolidated Elimination			Consolidated
Rental revenue	$	—		$	159,252		$	30,581	$	—		$	189,833
Tenant reimbursements	—			2,721			5,035		—			7,756
Other income	—			1,820			1,516		—			3,336
Mortgage and other financing income	424			31,678			3,774		—			35,876
Intercompany fee income	1,341			—			—		(1,341		)	—
Interest income on intercompany notes receivable	—			4,789			—		(4,789		)	—
Total revenue	1,765			200,260			40,906		(6,130		)	236,801
Equity in subsidiaries’ earnings	155,670			—			—		(155,670		)	—
Property operating expense	—			5,215			5,846		—			11,061
Intercompany fee expense	—			—			1,341		(1,341		)	—
Other expense	—			—			5		—			5
General and administrative expense	—			15,118			3,100		—			18,218
Costs associated with loan refinancing	—			339			552		—			891
Interest expense, net	44,627			(4,404		)	5,822		—			46,045
Interest expense on intercompany notes payable	—			—			4,789		(4,789		)	—
Transaction costs	1,837			—			97		—			1,934
Depreciation and amortization	889			43,194			7,538		—			51,621
Income before equity in income from joint ventures and other items	110,082			140,798			11,816		(155,670		)	107,026
Equity in income from joint ventures	—			—			298		—			298
Gain on sale of real estate	—			2,270			—		—			2,270
Income before income taxes	110,082			143,068			12,114		(155,670		)	109,594
Income tax benefit (expense)	(767		)	—			488		—			(279		)
Net income attributable to EPR Properties	109,315			143,068			12,602		(155,670		)	109,315
Preferred dividend requirements	(11,904		)	—			—		—			(11,904		)
Net income available to common shareholders of EPR Properties	$	97,411		$	143,068		$	12,602	$	(155,670	)	$	97,411
Comprehensive income attributable to EPR Properties	$	107,178		$	143,068		$	14,437	$	(157,505	)	$	107,178

Condensed Consolidating Statement of Income Six Months Ended June 30, 2015

	EPR Properties (Issuer)			Wholly Owned Subsidiary Guarantors			Non- Guarantor Subsidiaries		Consolidated Elimination			Consolidated
Rental revenue	$	—		$	122,633		$	31,967	$	—		$	154,600
Tenant reimbursements	—			2,674			5,594		—			8,268
Other income	—			2			1,696		—			1,698
Mortgage and other financing income	424			30,304			5,400		—			36,128
Intercompany fee income	1,397			—			—		(1,397		)	—
Interest income on intercompany notes receivable	111			4,949			—		(5,060		)	—
Total revenue	1,932			160,562			44,657		(6,457		)	200,694
Equity in subsidiaries’ earnings	152,312			—			—		(152,312		)	—
Property operating expense	—			5,776			6,351		—			12,127
Intercompany fee expense	—			—			1,397		(1,397		)	—
Other expense	—			—			312		—			312
General and administrative expense	—			12,034			3,404		—			15,438
Retirement severance expense	18,578			—			—		—			18,578
Costs associated with loan refinancing or payoff	243			—			—		—			243
Interest expense, net	36,184			(3,739		)	6,149		—			38,594
Interest expense on intercompany notes payable	—			—			5,060		(5,060		)	—
Transaction costs	5,736			—			299		—			6,035
Depreciation and amortization	778			33,203			7,223		—			41,204
Income before equity in income from joint ventures and other items	92,725			113,288			14,462		(152,312		)	68,163
Equity in income from joint ventures	—			—			362		—			362
Gain on sale of real estate	—			23,748			176		—			23,924
Income before income taxes	92,725			137,036			15,000		(152,312		)	92,449
Income tax benefit (expense)	(1,138		)	—			218		—			(920		)
Income from continuing operations	91,587			137,036			15,218		(152,312		)	91,529
Discontinued operations:
Income from discontinued operations	—			58			—		—			58
Net income attributable to EPR Properties	91,587			137,094			15,218		(152,312		)	91,587
Preferred dividend requirements	(11,904		)	—			—		—			(11,904		)
Net income available to common shareholders of EPR Properties	$	79,683		$	137,094		$	15,218	$	(152,312	)	$	79,683
Comprehensive income attributable to EPR Properties	$	87,311		$	137,047		$	11,890	$	(148,937	)	$	87,311

Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2016

	EPR Properties (Issuer)			Wholly Owned Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidated
Intercompany fee income (expense)	$	1,341		$	—		$	(1,341	)	$	—
Interest income (expense) on intercompany receivable/payable	—			4,789			(4,789		)	—
Net cash provided (used) by other operating activities	(43,623		)	169,576			26,579			152,532
Net cash provided (used) by operating activities	(42,282		)	174,365			20,449			152,532
Investing activities:
Acquisition of rental properties and other assets	(107		)	(138,578		)	(103		)	(138,788		)
Proceeds from sale of real estate	—			11,652			1,477			13,129
Investment in mortgage notes receivable	—			(65,508		)	—			(65,508		)
Proceeds from mortgage note receivable paydown	—			44,365			19,320			63,685
Proceeds from sale of infrastructure related to issuance of revenue bonds	—			43,462			—			43,462
Proceeds from insurance recovery	—			1,810			401			2,211
Proceeds from sale of investments in a direct financing lease, net	—			825			—			825
Additions to property under development	(25		)	(184,213		)	(2,978		)	(187,216		)
Advances to subsidiaries, net	(110,593		)	136,555			(25,962		)	—
Net cash used by investing activities	(110,725		)	(149,630		)	(7,845		)	(268,200		)
Financing activities:
Proceeds from long-term debt facilities	318,000			—			—			318,000
Principal payments on long-term debt	(167,000		)	(24,754		)	(11,362		)	(203,116		)
Deferred financing fees paid	(161		)	—			(8		)	(169		)
Costs associated with loan refinancing or payoff (cash portion)	—			—			(472		)	(472		)
Net proceeds from issuance of common shares	142,279			—			—			142,279
Impact of stock option exercises, net	(717		)	—			—			(717		)
Purchase of common shares for treasury for vesting	(4,208		)	—			—			(4,208		)
Dividends paid to shareholders	(131,701		)	—			—			(131,701		)
Net cash provided (used) by financing activities	156,492			(24,754		)	(11,842		)	119,896
Effect of exchange rate changes on cash	—			—			(49		)	(49		)
Net increase (decrease) in cash and cash equivalents	3,485			(19		)	713			4,179
Cash and cash equivalents at beginning of the period	1,089			946			2,248			4,283
Cash and cash equivalents at end of the period	$	4,574		$	927		$	2,961		$	8,462

Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2015

	EPR Properties (Issuer)			Wholly Owned Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidated
Intercompany fee income (expense)	$	1,397		$	—		$	(1,397	)	$	—
Interest income (expense) on intercompany receivable/payable	111			4,949			(5,060		)	—
Net cash provided (used) by other operating activities	(52,121		)	141,186			30,816			119,881
Net cash provided (used) by operating activities of continuing operations	(50,613		)	146,135			24,359			119,881
Net cash provided by operating activities of discontinued operations	—			526			—			526
Net cash provided (used) by operating activities	(50,613		)	146,661			24,359			120,407
Investing activities:
Acquisition of rental properties and other assets	(280		)	(92,932		)	(9		)	(93,221		)
Proceeds from sale of real estate	—			42,709			1,081			43,790
Investment in mortgage note receivable	—			(5,541		)	(30,048		)	(35,589		)
Proceeds from mortgage note receivable paydown	—			308			—			308
Proceeds from sale of investments in a direct financing lease, net	—			4,741			—			4,741
Additions to property under development	(4		)	(196,096		)	(10,855		)	(206,955		)
Advances to subsidiaries, net	(216,606		)	195,583			21,023			—
Net cash used by investing activities	(216,890		)	(51,228		)	(18,808		)	(286,926		)
Financing activities:
Proceeds from long-term debt facilities	403,914			155,000			—			558,914
Principal payments on long-term debt	(5,000		)	(249,898		)	(4,761		)	(259,659		)
Deferred financing fees paid	(6,848		)	(6		)	—			(6,854		)
Net proceeds from issuance of common shares	240			—			—			240
Impact of stock option exercises, net	(35		)	—			—			(35		)
Purchase of common shares for treasury for vesting	(8,223		)	—			—			(8,223		)
Dividends paid to shareholders	(114,600		)	—			—			(114,600		)
Net cash provided (used) by financing activities	269,448			(94,904		)	(4,761		)	169,783
Effect of exchange rate changes on cash	—			(17		)	(437		)	(454		)
Net increase in cash and cash equivalents	1,945			512			353			2,810
Cash and cash equivalents at beginning of the period	(1,234		)	1,837			2,733			3,336
Cash and cash equivalents at end of the period	$	711		$	2,349		$	3,086		$	6,146