Condensed Consolidating Financial Statements

A portion of the Company's subsidiaries have guaranteed the Company’s indebtedness under the Company's unsecured credit facilities and existing senior unsecured notes. 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, 2017 and December 31, 2016 and for the three months ended March 31, 2017 and 2016 (in thousands):

Condensed Consolidating Balance Sheet As of March 31, 2017

	EPR Properties (Issuer)		Wholly Owned Subsidiary Guarantors		Non- Guarantor Subsidiaries		Consolidated Elimination			Consolidated
Assets
Rental properties, net	$	—	$	3,234,232	$	438,898	$	—		$	3,673,130
Land held for development	—		1,258		21,272		—			22,530
Property under development	—		287,647		44,287		—			331,934
Mortgage notes and related accrued interest receivable	—		669,203		2,594		—			671,797
Investment in a direct financing lease, net	—		103,095		—		—			103,095
Investment in joint ventures	—		—		5,522		—			5,522
Cash and cash equivalents	11,614		1,515		1,317		—			14,446
Restricted cash	440		27,484		599		—			28,523
Accounts receivable, net	1,111		86,130		9,026		—			96,267
Intercompany notes receivable	—		179,589		—		(179,589		)	—
Investments in subsidiaries	4,713,659		—		—		(4,713,659		)	—
Other assets	25,203		21,759		52,576		—			99,538
Total assets	$	4,752,027	$	4,611,912	$	576,091	$	(4,893,248	)	$	5,046,782
Liabilities and Equity
Liabilities:
Accounts payable and accrued liabilities	$	47,853	$	49,771	$	3,814	$	—		$	101,438
Dividends payable	27,974		—		—		—			27,974
Unearned rents and interest	—		60,780		799		—			61,579
Intercompany notes payable	—		—		179,589		(179,589		)	—
Debt	2,436,791		—		179,591		—			2,616,382
Total liabilities	2,512,618		110,551		363,793		(179,589		)	2,807,373
Total equity	2,239,409		4,501,361		212,298		(4,713,659		)	2,239,409
Total liabilities and equity	$	4,752,027	$	4,611,912	$	576,091	$	(4,893,248	)	$	5,046,782

Condensed Consolidating Balance Sheet As of December 31, 2016

	EPR Properties (Issuer)		Wholly Owned Subsidiary Guarantors		Non- Guarantor Subsidiaries		Consolidated Elimination			Consolidated
Assets
Rental properties, net	$	—	$	3,164,622	$	431,140	$	—		$	3,595,762
Land held for development	—		1,258		21,272		—			22,530
Property under development	1,010		247,239		48,861		—			297,110
Mortgage notes and related accrued interest receivable	—		612,141		1,837		—			613,978
Investment in a direct financing lease, net	—		102,698		—		—			102,698
Investment in joint ventures	—		—		5,972		—			5,972
Cash and cash equivalents	16,586		1,157		1,592		—			19,335
Restricted cash	365		8,352		1,027		—			9,744
Accounts receivable, net	556		89,145		9,238		—			98,939
Intercompany notes receivable	—		179,589		—		(179,589		)	—
Investments in subsidiaries	4,521,095		—		—		(4,521,095		)	—
Other assets	21,768		23,068		54,118		—			98,954
Total assets	$	4,561,380	$	4,429,269	$	575,057	$	(4,700,684	)	$	4,865,022
Liabilities and Equity
Liabilities:
Accounts payable and accrued liabilities	$	63,431	$	52,061	$	4,266	$	—		$	119,758
Dividends payable	26,318		—		—		—			26,318
Unearned rents and interest	—		46,647		773		—			47,420
Intercompany notes payable	—		—		179,589		(179,589		)	—
Debt	2,285,730		—		199,895		—			2,485,625
Total liabilities	2,375,479		98,708		384,523		(179,589		)	2,679,121
Total equity	2,185,901		4,330,561		190,534		(4,521,095		)	2,185,901
Total liabilities and equity	$	4,561,380	$	4,429,269	$	575,057	$	(4,700,684	)	$	4,865,022

Condensed Consolidating Statement of Income Three Months Ended March 31, 2017

	EPR Properties (Issuer)			Wholly Owned Subsidiary Guarantors			Non- Guarantor Subsidiaries			Consolidated Elimination			Consolidated
Rental revenue	$	—		$	93,531		$	13,506		$	—		$	107,037
Tenant reimbursements	—			1,241			2,508			—			3,749
Other income	—			6			686			—			692
Mortgage and other financing income	232			17,372			30			—			17,634
Intercompany fee income	684			—			—			(684		)	—
Interest income on intercompany notes receivable	—			2,444			—			(2,444		)	—
Total revenue	916			114,594			16,730			(3,128		)	129,112
Equity in subsidiaries’ earnings	85,042			—			—			(85,042		)	—
Property operating expense	—			3,272			3,078			—			6,350
Intercompany fee expense	—			—			684			(684		)	—
General and administrative expense	—			9,642			1,415			—			11,057
Costs associated with loan refinancing or payoff	—			—			5			—			5
Interest expense, net	31,458			(2,653		)	1,887			—			30,692
Interest expense on intercompany notes payable	—			—			2,444			(2,444		)	—
Transaction costs	57			—			—			—			57
Depreciation and amortization	193			24,725			3,159			—			28,077
Income before equity in income from joint ventures and other items	54,250			79,608			4,058			(85,042		)	52,874
Equity in loss from joint ventures	—			—			(8		)	—			(8		)
Gain on sale of real estate	—			2,004			—			—			2,004
Income before income taxes	54,250			81,612			4,050			(85,042		)	54,870
Income tax expense	(334		)	—			(620		)	—			(954		)
Net income	53,916			81,612			3,430			(85,042		)	53,916
Preferred dividend requirements	(5,952		)	—			—			—			(5,952		)
Net income available to common shareholders of EPR Properties	$	47,964		$	81,612		$	3,430		$	(85,042	)	$	47,964
Comprehensive income	$	54,788		$	81,612		$	2,727		$	(84,339	)	$	54,788

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	$	—		$	80,329		$	13,449	$	—		$	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			100,524			20,368		(2,989		)	118,768
Equity in subsidiaries’ earnings	76,787			—			—		(76,787		)	—
Property operating expense	—			2,663			2,818		—			5,481
Intercompany fee expense	—			—			653		(653		)	—
Other expense	—			—			5		—			5
General and administrative expense	—			7,660			1,558		—			9,218
Costs associated with loan refinancing or payoff	—			—			552		—			552
Interest expense, net	22,190			(1,246		)	2,345		—			23,289
Interest expense on intercompany notes payable	—			—			2,336		(2,336		)	—
Transaction costs	443			—			1		—			444
Depreciation and amortization	443			22,074			3,438		—			25,955
Income before equity in income from joint ventures and other items	54,576			69,373			6,662		(76,787		)	53,824
Equity in income from joint ventures	—			—			212		—			212
Income before income taxes	54,576			69,373			6,874		(76,787		)	54,036
Income tax expense	(396		)	—			540		—			144
Net income	54,180			69,373			7,414		(76,787		)	54,180
Preferred dividend requirements	(5,952		)	—			—		—			(5,952		)
Net income available to common shareholders of EPR Properties	$	48,228		$	69,373		$	7,414	$	(76,787	)	$	48,228
Comprehensive income	$	52,266		$	69,373		$	9,043	$	(78,416	)	$	52,266

Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2017

	EPR Properties (Issuer)			Wholly Owned Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidated
Intercompany fee income (expense)	$	684		$	—		$	(684	)	$	—
Interest income (expense) on intercompany receivable/payable	—			2,444			(2,444		)	—
Net cash (used) provided by other operating activities	(41,300		)	106,658			9,413			74,771
Net cash (used) provided by operating activities	(40,616		)	109,102			6,285			74,771
Investing activities:
Acquisition of rental properties and other assets	(251		)	(60,414		)	(99		)	(60,764		)
Proceeds from sale of real estate	—			18,105			—			18,105
Investment in mortgage notes receivable	—			(66,080		)	(977		)	(67,057		)
Proceeds from mortgage note receivable paydown	—			8,140			—			8,140
Investment in promissory notes receivable	—			(554		)	—			(554		)
Proceeds from promissory notes receivable paydown	—			1,599			—			1,599
Additions to property under development	(725		)	(95,709		)	(3,750		)	(100,184		)
Advances to subsidiaries, net	(104,765		)	86,169			18,596			—
Net cash (used) provided by investing activities	(105,741		)	(108,744		)	13,770			(200,715		)
Financing activities:
Proceeds from debt facilities and senior unsecured notes	175,000			—			—			175,000
Principal payments on debt	(25,000		)	—			(20,331		)	(45,331		)
Deferred financing fees paid	(33		)	—			—			(33		)
Costs associated with loan refinancing or payoff (cash portion)	—			—			(1		)	(1		)
Net proceeds from issuance of common shares	68,141			—			—			68,141
Impact of stock option exercises, net	(138		)	—			—			(138		)
Purchase of common shares for treasury for vesting	(6,729		)	—			—			(6,729		)
Dividends paid to shareholders	(69,856		)	—			—			(69,856		)
Net cash provided (used) by financing activities	141,385			—			(20,332		)	121,053
Effect of exchange rate changes on cash	—			—			2			2
Net (decrease) increase in cash and cash equivalents	(4,972		)	358			(275		)	(4,889		)
Cash and cash equivalents at beginning of the period	16,586			1,157			1,592			19,335
Cash and cash equivalents at end of the period	$	11,614		$	1,515		$	1,317		$	14,446

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 (used) provided by other operating activities	(31,258		)	86,174			14,161			69,077
Net cash (used) provided by operating activities	(30,605		)	88,510			11,172			69,077
Investing activities:
Acquisition of rental properties and other assets	(66		)	(36,771		)	(70		)	(36,907		)
Proceeds from sale of real estate	—			444			1,476			1,920
Investment in mortgage note receivable	—			(53,659		)	—			(53,659		)
Proceeds from mortgage note receivable paydown	—			176			19,320			19,496
Additions to property under development	—			(60,332		)	(1,433		)	(61,765		)
Advances to subsidiaries, net	(39,404		)	62,022			(22,618		)	—
Net cash used by investing activities	(39,470		)	(88,120		)	(3,325		)	(130,915		)
Financing activities:
Proceeds from debt facilities	162,000			—			—			162,000
Principal payments on debt	(141,000		)	(575		)	(7,011		)	(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			(575		)	(7,491		)	68,439
Effect of exchange rate changes on cash	—			—			96			96
Net increase (decrease) in cash and cash equivalents	6,430			(185		)	452			6,697
Cash and cash equivalents at beginning of the period	1,089			1,289			1,905			4,283
Cash and cash equivalents at end of the period	$	7,519		$	1,104		$	2,357		$	10,980