Supplemental Operating and Financial Data

EX-99.2 3 dex992.htm SUPPLEMENTAL OPERATING AND FINANCIAL DATA Supplemental Operating and Financial Data

Exhibit 99.2

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Supplemental Operating and Financial Data

First Quarter Ended March 31, 2011

Entertainment Properties Trust

Supplemental Operating and Financial Data

First Quarter Ended March 31, 2011

Table of Contents


Section		Page

Company Profile		4
Investor Information		5
Selected Financial Information		6
Selected Balance Sheet Information		7
Selected Operating Data		8
Funds From Operations		9
Adjusted Funds From Operations		10
Capital Structure		11
Ratios		16
Capital Spending and Disposition Summaries		19
Financial and Investment Information by Asset Type		20
Lease Expirations Excluding Non-Theatre Retail		24
Top Ten Customers by Revenue from Continuning Operations		25
Summary of Mortgage Notes Receivable		26
Summary of Notes Receivable		27
Summary of Unconsolidated Joint Ventures		28
Definitions		29

CAUTIONARY STATEMENT CONCERNING FORWARD LOOKING STATEMENTS

With the exception of historical information, certain statements contained or incorporated by reference herein may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), such as those pertaining to our acquisition or disposition of properties, our capital resources, future expenditures for development projects, and our results of operations. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of actual events. There is no assurance the events or circumstances reflected in the forward-looking statements will occur. You can identify forward-looking statements by use of words such as “will be,” “intend,” “continue,” “believe,” “may,” “expect,” “hope,” “anticipate,” “goal,” “forecast,” “expects,” “anticipates,” “estimates,” “offers,” “plans” “would,” “may” or other similar expressions or other comparable terms or discussions of strategy, plans or intentions contained or incorporated by reference herein. Forward-looking statements necessarily are dependent on assumptions, data or methods that may be incorrect or imprecise. In addition, references to our budgeted amounts and guidance are forward looking statements. These forward-looking statements represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Many of the factors that will determine these items are beyond our ability to control or predict. For further discussion of these factors see “Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K and, to the extent applicable, our Quarterly Reports on Form 10-Q.

For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date hereof or the date of any document incorporated by reference herein. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances after the date hereof.

DEFINITIONS

See pages 29 and 30 for definitions of certain non-GAAP financial measures used in this document.

Entertainment Properties Trust

Company Profile

The Company

Entertainment Properties Trust (“EPR or the Company”) is a self administered and self-managed real estate investment trust. EPR was formed in August 1997 as a Maryland real estate investment trust (“REIT”), and an initial public offering was completed on November 18, 1997.

Since that time, the Company has grown into a leading specialty real estate investment trust with an investment portfolio that includes megaplex theatres and adjacent retail, public charter schools and other destination recreational and specialty investments.

Company Strategy

EPR’s primary business objective is to enhance shareholder value by achieving predictable and increasing Funds from Operations (“FFO”) and dividends per share. Our prevailing strategy is to focus on long-term investments in a limited number of categories in which we maintain a depth of knowledge and relationships, and which we believe offer sustained performance throughout all economic cycles. We believe our focused niche approach provides a competitive advantage, and the potential for higher growth and better yields.

We also adhere to rigorous underwriting and investing criteria, centered on key industry and property level cash flow criteria. As part of our growth strategy we will consider acquiring, developing or financing additional properties which are consistent with our overall strategy and meet our underwriting and investing criteria. In executing our growth strategy, we will employ moderate leverage. We have historically paid out approximately 75% of our FFO in the form of quarterly dividends. This allows investors to realize a portion of their returns on a current basis.

Following are the key criteria against which our investments are evaluated:

Inflection Opportunity - Renewal or restructuring in an industry’s properties

Enduring Value - Real estate devoted to and improving long-lived activities

Excellent Execution - Market-dominant performance that creates value beyond tenant credit

Attractive Economics - Accretive initial returns along with growth in yield

Advantageous Position - Sustainable competitive advantages

Entertainment Properties Trust

Investor Information

Senior Management


David Brain		Greg Silvers
President and Chief Executive Officer		Vice President and Chief Operating Officer

Mark Peterson		Jerry Earnest
Vice President and Chief Financial Officer		Vice President and Chief Investment Officer

Mike Hirons
Vice President, Finance

Company Information


Corporate Headquarters		Trading Symbols
909 Walnut, Suite 200		Common Stock:
Kansas City, MO 64106		EPR
888-EPR-REIT		Preferred Stock:
www.eprkc.com		EPR-PrB
		EPR-PrC
Stock Exchange Listing		EPR-PrD
New York Stock Exchange		EPR-PrE

Equity Research Coverage


J.P. Morgan	Anthony Palone	212-622-6682
RBC Capital Markets	Richard Moore	440-715-2646
Citi Global Markets	Michael Bilerman/Gregory Schweitzer	212-816-4471
Keybanc Capital Markets	Jordan Sadler	917-368-2280
FBR Capital Markets & Co.	Gabe Poggi	703-469-1141
BMO Capital Markets	Paul Adornato	212-885-4170
Kansas City Capital	Johnathan Braatz	816-932-8019
Janney Montgomery Scott	Andrew DiZio	215-665-6439

Entertainment Properties Trust is followed by the analysts identified above. Please note that any opinions, estimates, forecasts or recommendations regarding Entertainment Properties Trust’s performance made by these analysts are theirs alone and do not represent opinions, estimates, forecasts or recommendations of Entertainment Properties Trust or its management. Entertainment Properties Trust does not by its reference above or distribution imply its endorsement of or concurrence with such information, conclusions or recommendations.

Entertainment Properties Trust

Selected Financial Information

(Unaudited, dollars and shares in thousands)


	Three Months Ended March 31,
Operating Information	2011			2010
Revenue (1)	$	73,622		$	71,016
Net income available to common shareholders of Entertainment Properties Trust		34,179			22,523
Earnings before interest, taxes, depreciation and amortization (EBITDA) - continuing operations (2)		58,176			58,373
Earnings before interest, taxes, depreciation and amortization (EBITDA) - discontinued operations (2)		3,592			(6,361	)
Adjusted EBITDA - continuing operations (2)		61,249			59,365
Adjusted EBITDA - discontinued operations (2)		3,592			871
Interest expense, net (1)		18,845			16,945
Recurring principal payments		6,262			6,753
Capitalized interest		97			83
Straight-lined rental revenue		518			346
Dividends declared on preferred shares		7,552			7,552
Dividends declared on common shares		32,648			27,875
General and administrative expense		5,468			5,089

	March 31,
Balance Sheet Information	2011			2010
Total assets		2,758,057			2,862,505
Total assets before depreciation (gross assets)		3,063,808			3,135,498
Unencumbered real estate assets (3)
Number		111			50
Gross book value		1,516,115			438,428
Annualized stabilized NOI		141,023			46,285

Total debt		1,050,621			1,308,623
Equity		1,619,629			1,464,993
Common shares outstanding		46,641			42,884
Total market capitalization (using EOP closing price)		3,650,594			3,488,704
Debt/total assets		38	%		46	%
Debt/total market capitalization		29	%		38	%
Debt/gross assets		34	%		42	%
Debt/Adjusted EBITDA (1)(4)		4.29			5.51

(1)	Excludes discontinued operations.

(2)	See pages 29 and 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 and 30 for definitions.

Entertainment Properties Trust

Selected Balance Sheet Information

(Unaudited, dollars in thousands)


	1st Quarter 2011			4th Quarter 2010			3rd Quarter 2010			2nd Quarter 2010			1st Quarter 2010			4th Quarter 2009
Assets
Rental properties:
Megaplex theatres and other retail	$	1,948,256		$	2,101,795		$	2,085,187		$	2,069,652		$	2,087,909		$	1,883,386
Other		224,589			221,896			221,629			221,676			229,894			229,881
Less: accumulated depreciation		(305,751	)		(297,068	)		(286,392	)		(273,286	)		(272,993	)		(258,638	)
Land held for development		184,457			184,457			184,457			184,457			4,457			4,457
Property under development		8,638			5,967			7,671			7,779			9,162			8,272
Mortgage notes receivable (1)
Waterpark		170,517			168,994			168,545			168,545			165,452			163,298
Concord		—			—			—			—			133,119			133,119
Toronto Dundas Square Project		—			—			—			—			—			90,882
Metropolitan ski areas		136,410			136,410			136,410			136,410			136,409			135,581
Investment in a direct financing lease, net		229,801			226,433			225,187			216,419			215,196			169,850
Investment in joint ventures		23,570			22,010			19,334			19,423			4,356			4,080
Cash and cash equivalents		15,164			11,776			14,860			20,144			21,029			23,138
Restricted cash		31,490			16,279			21,253			16,351			10,770			12,857
Accounts receivable, net		38,204			39,814			36,364			33,483			34,834			30,727
Notes receivable (1)		5,104			5,127			5,152			5,159			7,247			7,898
Other assets and intangible assets, net		47,608			79,530			82,594			84,442			75,664			41,944

Total Assets	$	2,758,057		$	2,923,420		$	2,922,251		$	2,910,654		$	2,862,505		$	2,680,732


Liabilities and Equity
Liabilities:
Accounts payable and accrued liabilities	$	41,612		$	56,488		$	44,673		$	37,190		$	48,375		$	28,411
Common dividends payable		32,648			30,253			30,248			30,222			27,875			27,880
Preferred dividends payable		7,552			7,551			7,552			7,552			7,552			7,552
Unearned rents and interest		5,995			6,691			13,148			9,206			5,087			7,509
Line of credit		87,000			142,000			150,000			153,500			107,000			35,000
Long-term debt		963,621			1,049,179			1,052,180			1,055,067			1,201,623			1,106,423

Total Liabilities		1,138,428			1,292,162			1,297,801			1,292,737			1,397,512			1,212,775
Equity:
Common stock and additional paid in capital		1,790,570			1,785,848			1,783,852			1,781,104			1,637,040			1,633,554
Preferred stock at par value		167			167			167			167			167			167
Treasury stock		(44,743	)		(39,762	)		(39,069	)		(36,812	)		(36,804	)		(29,968	)
Loans to shareholders		—			—			(281	)		(281	)		(281	)		(1,925	)
Accumulated other comprehensive income		25,940			38,842			29,988			21,188			24,027			18,961
Distributions in excess of net income		(180,326	)		(181,856	)		(178,255	)		(175,463	)		(153,278	)		(147,927	)

Entertainment Properties Trust shareholders’ equity		1,591,608			1,603,239			1,596,402			1,589,903			1,470,871			1,472,862

Noncontrolling interests		28,021			28,019			28,048			28,014			(5,878	)		(4,905	)
Total Equity		1,619,629			1,631,258			1,624,450			1,617,917			1,464,993			1,467,957

Total Liabilities and equity	$	2,758,057		$	2,923,420		$	2,922,251		$	2,910,654		$	2,862,505		$	2,680,732

(1)	Includes related accrued interest receivable and is net of loan loss reserves.

Entertainment Properties Trust

Selected Operating Data

(Unaudited, dollars in thousands)


	1st Quarter 2011			4th Quarter 2010			3rd Quarter 2010			2nd Quarter 2010			1st Quarter 2010			4th Quarter 2009
Rental revenue and tenant reimbursements:
Theatres and adjacent retail	$	57,894		$	57,488		$	57,298		$	53,883		$	53,735		$	49,899
Vineyards and wineries		1,819			3,620			3,491			3,818			4,138			4,194
Metropolitan ski areas		318			316			315			315			315			312
Public charter schools		12			—			—			—			—			—
Mortgage and other financing income:
Public charter schools (1)		6,951			6,872			6,604			6,567			6,208			5,203
Metropolitan ski areas		3,410			3,410			3,398			3,398			3,358			3,338
Waterpark		2,965			2,940			2,940			2,902			2,825			2,824
Other		229			136			358			146			201			242
Other income		24			52			235			45			236			581

Total revenue	$	73,622		$	74,834		$	74,639		$	71,074		$	71,016		$	66,593

Property operating expense		6,357			6,860			6,722			5,962			6,225			6,382
Other expense		548			433			384			143			337			437
General and administrative expense		5,468			4,430			4,076			4,633			5,089			3,373
Costs associated with loan refinancing		6,388			—			—			11,383			—			—
Interest expense, net		18,845			19,298			19,280			16,999			16,945			16,702
Transaction costs		1,273			141			11			74			292			3,165
Provision for loan losses		—			—			—			—			700			5,197
Impairment charges		1,800			463			—			—			—			6,357
Depreciation and amortization		12,062			12,084			11,770			11,118			11,127			10,515
Equity in income from joint ventures		774			776			706			423			233			222

Income from continuing operations		21,655			31,901			33,102			21,185			30,534			14,687
Discontinued operations:
Income (loss) from discontinued operations		1,785			1,719			1,743			(5,466	)		(2,679	)		(1,321	)
Gain on acquisition		—			555			—			—			8,468			—
Transaction costs		—			—			—			(37	)		(7,232	)		—
Gain (loss) on sale of real estate		18,293			—			198			(934	)		—			—

Net income		41,733			34,175			35,043			14,748			29,091			13,366
Net loss (income) attributable to noncontrolling interests		(2	)		28			(34	)		840			984			899
Preferred dividend requirements		(7,552	)		(7,551	)		(7,552	)		(7,552	)		(7,552	)		(7,550	)

Net income available to common shareholders of Entertainment Properties Trust	$	34,179		$	26,652		$	27,457		$	8,036		$	22,523		$	6,715

(1)	Represents income from owned assets under a direct financing lease and one note receivable.

Entertainment Propertiest Trust

Funds From Operations

(Unaudited, dollars in thousands except per share information)


	1st Quarter 2011			4th Quarter 2010		3rd Quarter 2010			2nd Quarter 2010			1st Quarter 2010			4th Quarter 2009
Funds From Operations (“FFO”) (1):
Net income available to common shareholders of Entertainment Properties Trust	$	34,179		$	26,652	$	27,457		$	8,036		$	22,523		$	6,715
Loss (gain) on sale of real estate		(18,293	)		—		(198	)		934			—			—
Real estate depreciation and amortization		13,598			13,694		13,334			13,527			12,273			11,143
Allocated share of joint venture depreciation		109			90		81			72			65			66
Noncontrolling interest		—			—		—			(872	)		(1,033	)		(956	)

FFO available to common shareholders of Entertainment Properties Trust	$	29,593		$	40,436	$	40,674		$	21,697		$	33,828		$	16,968


FFO per common share attributable to Entertainment Properties Trust:
Basic	$	0.64		$	0.87	$	0.87		$	0.48		$	0.79		$	0.43
Diluted		0.63			0.86		0.87			0.48			0.78			0.43

Shares used for computation (in thousands):
Basic		46,503			46,539		46,511			44,869			42,850			39,641
Diluted		46,805			46,893		46,809			45,214			43,141			39,901

(1)	See pages 29 and 30 for definitions.

Entertainment Properties Trust

Adjusted Funds From Operations

(Unaudited, dollars in thousands except per share information)


	1st Quarter 2011			4th Quarter 2010			3rd Quarter 2010			2nd Quarter 2010			1st Quarter 2010			4th Quarter 2009
Adjusted Funds from Operations (“AFFO”) (1):
FFO available to common shareholders of Entertainment Properties Trust	$	29,593		$	40,436		$	40,674		$	21,697		$	33,828		$	16,968
Adjustments:

Non-cash impairment charges and provision for loan losses		1,800			463			—			—			700			11,554
Transaction costs		1,273			141			11			111			7,524			3,165
Non-real estate depreciation and amortization		270			239			130			97			130			190
Deferred financing fees amortization		1,023			1,061			1,122			1,390			1,236			1,111
Costs associated with loan refinancing		6,388			—			—			15,620			—			—
Share-based compensation expense to management and trustees		1,367			1,188			1,187			1,172			1,163			1,069
Maintenance capital expenditures (2)		(1,602	)		(2,559	)		(2,872	)		(163	)		(288	)		(108	)
Straight-lined rental revenue		(518	)		(642	)		(426	)		(469	)		(346	)		(696	)
Non-cash portion of mortgage and other financing income		(1,258	)		(1,274	)		(1,201	)		(1,257	)		(2,006	)		(1,855	)
Amortization of above market leases, net		20			66			74			39			21			—
Gain on acquisition		—			(555	)		—			—			(8,468	)		—

AFFO available to common shareholders of Entertainment Properties Trust	$	38,356		$	38,564		$	38,699		$	38,237		$	33,494		$	31,398


Weighted average shares outstanding-diluted AFFO (in thousands)		46,805			46,893			46,809			45,214			43,141			39,901

AFFO per diluted common share	$	0.82		$	0.82		$	0.83		$	0.85		$	0.78		$	0.79

Dividends declared per common share	$	0.70		$	0.65		$	0.65		$	0.65		$	0.65		$	0.65

AFFO payout ratio (3)		85	%		79	%		78	%		76	%		83	%		82	%

(1)	See pages 29 and 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.

Entertainment Properties Trust

Capital Structure at March 31, 2011

(Unaudited, dollars in thousands)

Consolidated Debt

Principal Payments Due on Long-Term Debt:


	Mortgages (1)				Term Loans/Bond/Capital Lease
Year	Amortization		Maturities		Amortization		Maturities		Credit Facility (2)		Senior Notes		Total		Weighted Avg Interest Rate
2011	$	18,384	$	—	$	36	$	9,216	$	—	$	—	$	27,636		5.01	%
2012		25,375		65,293		—		—		—		—		90,668		6.51	%
2013		18,167		98,484		—		—		87,000		—		203,651		4.79	%
2014		12,499		143,590		—		—		—		—		156,089		6.34	%
2015		11,118		90,813		—		—		—		—		101,931		5.74	%
2016		7,233		96,144		—		—		—		—		103,377		6.08	%
2017		3,752		85,500		—		—		—		—		89,252		5.89	%
2018		920		12,462		—		—		—		—		13,382		6.34	%
2019		—		—		—		—		—		—		—		—
2020		—		—		—		—		—		250,000		250,000		7.75	%
2021		—		—		—		—		—		—		—		—
Thereafter		—		4,000		—		10,635		—		—		14,635		1.69	%

	$	97,448	$	596,286	$	36	$	19,851	$	87,000	$	250,000	$	1,050,621		6.17	%


	Balance		Weighted Avg Interest Rate			Weighted Avg Maturity (yrs)
Fixed Rate Secured Debt	$	702,986		6.05	%		4.0
Fixed Rate Unsecured Debt		250,000		7.75	%		9.3
Variable Rate Secured Debt		10,635		0.26	%		26.5
Variable Rate Unsecured Debt		87,000		3.26	%		2.7

Total	$	1,050,621		6.17	%		5.3

(1)	Scheduled amortization and maturities represent only consolidated debt obligations.

(2)	Credit Facility Summary:


Commitment	Balance		Maturity		Rate at 3/31/2011

$382,500,000	$	87,000,000		December 1, 2013		3.26	%

Note: The facility includes an accordion feature in which the facility can be increased to up to $420 million subject to certain conditions, including lender consent.

Entertainment Propertiest Trust

Capital Structure at March 31, 2011 and December 31, 2010

(Unaudited, dollars in thousands)

Consolidated Debt (continued)

Summary of Long-Term Debt:


	March 31, 2011		December 31, 2010

Capital lease obligation, due December 31, 2011	$	9,251	$	9,251
Mortgage notes payable, 6.57%-6.73%, due October 1, 2012		44,115		44,473
Mortgage note payable, 6.63%, due November 1, 2012		24,667		24,866
Mortgage notes payable, 4.26%-9.01%, due February 10, 2013		111,328		112,982
Unsecured revolving variable rate credit facility, LIBOR + 3.00%, due December 1, 2013		87,000		142,000
Mortgage note payable, 6.84%, due March 1, 2014		104,539		103,127
Mortgage note payable, 5.58%, due April 1, 2014		59,232		59,537
Mortgage note payable, 5.56%, due June 5, 2015		33,025		33,182
Mortgage notes payable, 5.77%, due November 6, 2015		70,543		71,014
Mortgage notes payable, 5.84%, due March 6, 2016		39,688		39,944
Mortgage notes payable, 6.37%, due June 30, 2016		28,346		28,514
Mortgage notes payable, 6.10%, due October 1, 2016		25,473		25,625
Mortgage notes payable, 6.02%, due October 6, 2016		19,202		19,317
Mortgage note payable, 6.06%, due March 1, 2017		10,700		10,762
Mortgage note payable, 6.07%, due April 6, 2017		11,013		11,076
Mortgage notes payable, 5.73%-5.95%, due May 1, 2017		51,019		51,319
Mortgage note payable, 5.29%, due July 1, 2017		4,098		—
Mortgage notes payable, 5.86%, due August 1, 2017		26,119		26,268
Term loans payable, $82,958 at December 31, 2010 fixed through interest rate swaps at 5.11%-5.76%, $3,314 at December 31, 2010 at variable rates of LIBOR + 1.75%-2.00%, due December 1, 2017-June 5, 2018, paid in full February 7, 2011		—		86,272
Mortgage note payable, 6.19%, due February 1, 2018		16,039		16,171
Mortgage note payable, 7.37%, due July 15, 2018		10,589		10,844
Senior unsecured notes payable, 7.75%, due July 15, 2020		250,000		250,000
Bond payable, variable rate, due October 1, 2037		10,635		10,635
Mortgage note payable, 5.50%		4,000		4,000

Total	$	1,050,621	$	1,191,179

Entertainment Properties Trust

Capital Structure

Senior Notes

Senior Debt Ratings as of March 31, 2011


Moody’s		Baa3
Fitch		BBB-
Standard and Poor’s		BB+

Summary of Covenants

The Company’s outstanding bonds have a fixed interest rate at 7.75%. Interest on the senior notes is paid semiannually. The notes contain various covenants, including: (i) a limitation on incurrence of any debt which 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 our $250.0 million senior unsecured notes, as defined and calculated per the terms of our notes. These calculations, which are not based on U.S. generally accepted accounting principles, or GAAP, measurements, are presented to investors to show our ability to incur additional debt under the terms of our notes only and are not measures of our liquidity or performance. The actual amounts as of March 31, 2011 and December 31, 2010 are:


Note Covenants	Required	Actual 1st Quarter 2011 (1)			Actual 4th Quarter 2010
Limitation on incurrence of total debt (Total Debt/Total Assets)	< 60%		35	%		38	%
Limitation on incurrence of secured debt (Secured Debt/Total Assets)	< 40%		23	%		25	%
Debt service coverage (Consolidated Income Available for Debt Service/Annual Debt Service)	> 1.5 x		3.6x			3.6x

Maintenance of total unencumbered assets (Unencumbered Assets/Unsecured Debt)	> 150% of unsecured debt		502	%		430	%

(1)	See page 14 for detailed calculations

Entertainment Properties Trust

Capital Structure

Senior Notes

(Unaudited, dollars in thousands)

Covenant Calculations



Total Assets:	March 31, 2011			Total Debt:	March 31, 2011
Total Assets	$	2,758,057		Secured debt obligations	$	713,621
Add: accumulated depreciation		305,751		Unsecured debt obligations:
Less: intangible assets		(5,625	)	Unsecured debt		337,000

Total Assets	$	3,058,183		Oustanding letters of credit		—


				Derivatives at fair market value, net		6,640


Total Unencumbered Assets:	March 31, 2011			Total unsecured debt obligations:	343,640

Unencumbered real estate assets, gross	$	1,516,115

Cash and cash equivalents		15,164		Total Debt	$	1,057,261

Land held for development		184,457
Property under development		8,638

Total Unencumbered Assets	$	1,724,374


Consolidated income available for debt service:	1st Quarter 2011			4th Quarter 2010			3rd Quarter 2010			2nd Quarter 2010			Trailing Twelve Months
Adjusted EBITDA	$	61,249		$	63,111		$	63,457		$	60,336		$	248,153
Add (subtract): EBITDA of discontinued operations		3,592			3,568			3,445			4,564		$	15,169
Less: straight-line rental revenue		(518	)		(642	)		(426	)		(469	)		(2,055	)

Consolidated income available for debt service	$	64,323		$	66,037		$	66,463		$	64,353		$	261,176


Annual Debt Service:
Interest expense, gross	$	18,947		$	19,404		$	19,380		$	17,100		$	74,831
Interest expense from discontinued operations		—			—			—			3,208			3,208
Less: deferred financing fees amortization		(1,023	)		(1,061	)		(1,122	)		(1,390	)		(4,596	)

Annual Debt Service	$	17,924		$	18,343		$	18,258		$	18,918		$	73,443


Debt Service Coverage		3.6			3.6			3.6			3.4			3.6

Entertainment Properties Trust

Capital Structure at March 31, 2011

(Unaudited, dollars in thousands except share information)

Equity


Security	Shares Issued and Outstanding		Price per share at March 31, 2011		Liquidation Preference		Dividend Rate			Convertible

Common shares		46,640,807	$	46.82		N/A		(1	)	N/A
Series B		3,200,000	$	24.35	$	80,000		7.750	%	N
Series C		5,400,000	$	20.19	$	135,000		5.750	%	Y
Series D		4,600,000	$	23.94	$	115,000		7.375	%	N
Series E		3,450,000	$	27.63	$	86,250		9.000	%	Y

Calculation of Total Market Capitalization:


Common shares outstanding at March 31, 2011 multiplied by closing price at March 31, 2011	$	2,183,723
Aggregate liquidation value of Series B preferred shares		80,000
Aggregate liquidation value of Series C preferred shares		135,000
Aggregate liquidation value of Series D preferred shares		115,000
Aggregate liquidation value of Series E preferred shares		86,250
Total long-term debt at March 31, 2011		1,050,621

Total consolidated market capitalization	$	3,650,594

(1)	Quarterly dividend declared in the first quarter of 2011 was $0.70 per share.

Entertainment Properties Trust

Summary of Ratios

(Unaudited)


	1st Quarter 2011			4th Quarter 2010			3rd Quarter 2010			2nd Quarter 2010			1st Quarter 2010			4th Quarter 2009

Debt to total assets (book value)		38	%		41	%		41	%		42	%		46	%		43	%

Debt to total market capitalization		29	%		32	%		33	%		36	%		38	%		37	%

Debt to gross assets		34	%		37	%		37	%		38	%		42	%		39	%

Debt to Adjusted EBITDA (1)		4.29			4.72			4.74			5.01			5.51			5.06

Secured debt to secured assets (2)		60	%		60	%		61	%		61	%		52	%		47	%

Unencumbered real estate assets to total real estate assets (3)		56	%		54	%		53	%		53	%		17	%		17	%

Interest coverage ratio (4)		3.5			3.5			3.5			3.2			3.2			3.1

Fixed charge coverage ratio (4)		2.5			2.5			2.5			2.4			2.3			2.2

Debt service coverage ratio (4)		2.6			2.6			2.7			2.4			2.4			2.3

FFO payout ratio (5)		111	%		76	%		75	%		135	%		83	%		151	%

AFFO payout ratio (6)		85	%		79	%		78	%		76	%		83	%		82	%

(1)	Adjusted EBITDA is for the quarter annualized. See pages 29 and 30 for definitions.

(2)	Prior to June 30, 2010, includes previous secured revolving line of credit borrowing base assets.

(3)	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.

(4)	See page 17 for detailed calculation.

(5)	FFO payout ratio is calculated by dividing dividends declared per common share by FFO per diluted common share.

(6)	AFFO payout ratio is calculated by dividing dividends declared per common share by AFFO per diluted common share.

Entertainment Properties Trust

Calculation of Interest, Fixed Charge and Debt Service Coverage Ratios

(Unaudited, dollars in thousands)


	1st Quarter 2011			4th Quarter 2010			3rd Quarter 2010			2nd Quarter 2010			1st Quarter 2010			4th Quarter 2009

Interest Coverage Ratio (1):
Net income	$	41,733		$	34,175		$	35,043		$	14,748		$	29,091		$	13,366
Impairment charges		1,800			463			—			—			—			6,357
Provision for loan losses		—			—			—			—			700			5,197
Transaction costs		1,273			141			11			111			7,524			3,165
Interest expense, gross		18,947			19,404			19,380			20,308			19,327			18,544
Depreciation and amortization		13,869			13,933			13,458			13,632			12,403			11,336
Share-based compensation expense to management and trustees		1,367			1,188			1,187			1,172			1,163			1,069
Costs associated with loan refinancing		6,388			—			—			15,620			—			—
Interest cost capitalized		(97	)		(105	)		(103	)		(92	)		(83	)		(83	)
Straight-line rental revenue		(518	)		(642	)		(426	)		(469	)		(346	)		(696	)
Loss (gain) on sale of real estate from discontinued operations		(18,293	)		—			(198	)		934			—			—
Gain on acquisition		—			(555	)		—			—			(8,468	)		—

Interest coverage amount	$	66,469		$	68,002		$	68,352		$	65,964		$	61,311		$	58,255

Interest expense, net	$	18,845		$	19,298		$	19,276		$	20,207		$	19,219		$	18,441
Interest income		5			1			1			9			25			20
Interest cost capitalized		97			105			103			92			83			83

Interest expense, gross	$	18,947		$	19,404		$	19,380		$	20,308		$	19,327		$	18,544

Interest coverage ratio		3.5			3.5			3.5			3.2			3.2			3.1


Fixed Charge Coverage Ratio (1):
Interest coverage amount	$	66,469		$	68,002		$	68,352		$	65,964		$	61,311		$	58,255

Interest expense, gross	$	18,947		$	19,404		$	19,380		$	20,308		$	19,327		$	18,544
Preferred share dividends		7,552			7,551			7,552			7,552			7,552			7,550

Fixed charges	$	26,499		$	26,955		$	26,932		$	27,860		$	26,879		$	26,094

Fixed charge coverage ratio		2.5			2.5			2.5			2.4			2.3			2.2


Debt Service Coverage Ratio (1):
Interest coverage amount	$	66,469		$	68,002		$	68,352		$	65,964		$	61,311		$	58,255

Interest expense, gross	$	18,947		$	19,404		$	19,380		$	20,308		$	19,327		$	18,544
Recurring principal payments		6,262			6,501			6,286			7,722			6,753			6,595

Debt service	$	25,209		$	25,905		$	25,666		$	28,030		$	26,080		$	25,139

Debt service coverage ratio		2.6			2.6			2.7			2.4			2.4			2.3

(1)	See pages 29 and 30 for definitions. Amounts above include the impact of discontinued operations, which is separately classified in the income statement.

Entertainment Properties Trust

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 2011			4th Quarter 2010			3rd Quarter 2010			2nd Quarter 2010			1st Quarter 2010			4th Quarter 2009
Net cash provided by operating activities		35,004			53,251		$	52,497		$	41,151		$	33,492		$	35,951

Equity in income from joint ventures		774			776			706			423			233			222
Distributions from joint ventures		(652	)		(831	)		(796	)		(586	)		(269	)		(243	)
Amortization of deferred financing costs		(1,023	)		(1,061	)		(1,122	)		(1,390	)		(1,236	)		(1,111	)
Amortization of above market leases, net		(20	)		(66	)		(74	)		(39	)		(21	)		—
Increase (decrease) in mortgage notes accrued interest receivable		—			—			—			(2,154	)		2,982			808
Increase (decrease) in restricted cash		(740	)		1,467			675			(2,789	)		(304	)		1,463
Increase (decrease) in accounts receivable, net		(1,353	)		2,916			1,592			1,143			2,246			1,394
Increase (decrease) in notes and accrued interest receivable		(23	)		(25	)		(8	)		(69	)		49			5
Increase in direct financing lease receivable		1,255			1,246			1,167			1,223			1,114			967
Increase (decrease) in other assets		1,416			(732	)		1,094			(516	)		3,536			(1,090	)
Decrease (increase) in accounts payable and accrued liabilities		7,572			(7,556	)		(6,386	)		(1,576	)		(6,660	)		(1,073	)
Decrease (increase) in unearned rents		25			(181	)		145			1,623			(273	)		32
Straight-line rental revenue		(518	)		(642	)		(426	)		(469	)		(346	)		(696	)
Interest expense, gross		18,947			19,404			19,380			20,308			19,327			18,544
Interest cost capitalized		(97	)		(105	)		(103	)		(92	)		(83	)		(83	)
Costs associated with loan refinancing (cash portion)		4,629			—			—			9,662			—			—
Transaction costs		1,273			141			11			111			7,524			3,165


Interest coverage amount (1)	$	66,469		$	68,002		$	68,352		$	65,964		$	61,311		$	58,255

(1)	See pages 29 and 30 for definitions. Amounts above include the impact of discontinued operations, which is separately classified in the income statement.

Entertainment Properties Trust

Capital Spending and Disposition Summaries

(Unaudited, dollars in thousands)

2011 Capital Spending:


Description	Location	Capital Spending Three Months Ended March 31, 2011

Investment in direct financing lease related to public charter schools	various		2,113

Acquisition of four theatre portfolio	various		37,761

Acquisition of public charter school property	Baton Rouge, LA		4,280

Additions to mortgage note receivable for development of Schlitterbahn Vacation Village	Kansas City, KS		1,524

Development of entertainment retail center	Suffolk, VA		958

Investment in unconsolidated joint ventures	various		2,746

Investment in theatre development projects	various		981

Capitalized building improvements and tenant improvements			17


Total investment spending		$	50,380

Other capital acquisitions, net	various		1,456


Total capital spending		$	51,836


2011 Dispositions:

Description

Location

Date of
Disposition

Net Sales Proceeds

Toronto Dundas Square

Toronto,
Ontario

March 2011

222,701

Entertainment Properties Trust

Financial Information by Asset Type

For the Three Months Ended March 31, 2011

(Unaudited, dollars in thousands)


	Theatres and Adjacent Retail*			Public Charter Schools			Metropolitan Ski Areas			Vineyards and Wineries			Waterpark/ Concord Development			Subtotal			Unallocated			Consolidated
Rental revenue	$	53,233			12		$	318		$	1,819		$	—		$	55,382		$	—		$	55,382
Tenant reimbursements		4,661			—			—			—			—			4,661			—			4,661
Other income		23			—			—			—			1			24			—			24
Mortgage and other financing income		81			6,951			3,410			148			2,965			13,555			—			13,555

Total revenue		57,998			6,963			3,728			1,967			2,966			73,622			—			73,622

Property operating expense		6,013			—			—			211			133			6,357			—			6,357
Other expense		—			—			—			212			101			313			235			548

Total investment expenses		6,013			—			—			423			234			6,670			235			6,905

General and administrative expense		—			—			—			—			—			—			5,468			5,468
Transaction costs		—			—			—			—			—			—			1,273			1,273
Impairment charge		—			—			—			—			—			—			1,800			1,800

EBITDA - continuing operations	$	51,985		$	6,963		$	3,728		$	1,544		$	2,732		$	66,952		$	(6,976	)	$	58,176

		78	%		10	%		6	%		2	%		4	%		100	%

Add: transaction costs																				1,273			1,273
Add: impairment charge																				1,800			1,800

Adjusted EBITDA - continuing operations																						$	61,249
Reconciliation to Consolidated Statements of Income:
Costs associated with loan refinancing																				(6,388	)		(6,388	)
Interest expense, net																				(18,845	)		(18,845	)
Transaction costs																				(1,273	)		(1,273	)
Impairment charge																				(1,800	)		(1,800	)
Depreciation and amortization																				(12,062	)		(12,062	)
Equity in income from joint ventures																				774			774
Discontinued operations:
Income from discontinued operations																				1,785			1,785
Gain on sale of real estate																				18,293			18,293

Net income																							41,733
Noncontrolling interests																				(2	)		(2	)
Preferred dividend requirements																				(7,552	)		(7,552	)

Net income available to common shareholders																						$	34,179

*	Includes 8.9 million square feet of megaplex theatres and 1.5 million square feet of retail at March 31, 2011

Entertainment Properties Trust

Financial Information by Asset Type

For the Three Months Ended March 31, 2010

(Unaudited, dollars in thousands)


	Theatres and Adjacent Retail*			Public Charter Schools			Metropolitan Ski Areas			Vineyards and Wineries			Waterpark/ Concord Development			Subtotal			Unallocated			Consolidated
Rental revenue	$	49,456		$	—		$	315		$	4,138		$	—		$	53,909		$	—		$	53,909
Tenant reimbursements		4,279			—			—			—			—			4,279			—			4,279
Other income		205			—			—			31			—			236			—			236
Mortgage and other financing income		139			6,208			3,358			—			2,825			12,530			62			12,592

Total revenue		54,079			6,208			3,673			4,169			2,825			70,954			62			71,016

Property operating expense		5,535			—			—			690			—			6,225			—			6,225
Other expense		216			—			—			114			—			330			7			337

Total investment expenses		5,751			—			—			804			—			6,555			7			6,562

General and administrative expense		—			—			—			—			—			—			5,089			5,089
Transaction costs		—			—			—			—			—			—			292			292
Provision for loan losses		—			—			—			—			—			—			700			700

EBITDA - continuing operations	$	48,328		$	6,208		$	3,673		$	3,365		$	2,825		$	64,399		$	(6,026	)	$	58,373

		75	%		10	%		6	%		5	%		4	%		100	%

Add: transaction costs																				292			292
Add: provision for loan losses																				700			700

Adjusted EBITDA - continuing operations																						$	59,365
Reconciliation to Consolidated Statements of Income:
Interest expense, net																				(16,945	)		(16,945	)
Transaction costs																				(292	)		(292	)
Provision for loan losses																				(700	)		(700	)
Depreciation and amortization																				(11,127	)		(11,127	)
Equity in income from joint ventures																				233			233
Discontinued operations:
Loss from discontinued operations																				(2,679	)		(2,679	)
Gain on acquisition																				8,468			8,468
Transaction costs																				(7,232	)		(7,232	)

Net income																							29,091
Noncontrolling interests																				984			984
Preferred dividend requirements																				(7,552	)		(7,552	)

Net income available to common shareholders																						$	22,523

*	Includes 7.9 million square feet of megaplex theatres and 2.1 million square feet of retail at March 31, 2010

Entertainment Properties Trust

Financial Information by Asset Type - Discontinued Operations

(Unaudited, dollars in thousands)


For the Three Months Ended March 31, 2011

	Theatres and Adjacent Retail		Vineyards and Wineries		Unallocated		Consolidated
Rental revenue	$	4,003	$	—	$	—	$	4,003
Tenant reimbursements		2,346		—		—		2,346

Total revenue		6,349		—		—		6,349

Property operating expense		2,757		—		—		2,757
Other expense		—				—		—

Total investment expenses		2,757		—		—		2,757

EBITDA and Adjusted EBITDA - discontinued operations	$	3,592	$	—	$	—	$	3,592


Reconciliation to Consolidated Statements of Income:
Depreciation and amortization								(1,807	)
Gain on sale of real estate								18,293

Income from discontinued operations							$	20,078

For the Three Months Ended March 31, 2010


	Theatres and Adjacent Retail			Vineyards and Wineries			Unallocated		Consolidated
Rental revenue	$	3,062		$	—		$	—	$	3,062
Tenant reimbursements		1,382			—			—		1,382

Total revenue		4,444			—			—		4,444


Property operating expense		3,509			—			—		3,509
Other expense		—			64			—		64

Total investment expenses		3,509			64			—		3,573
Transaction costs		7,232			—			—		7,232

EBITDA - discontinued operations	$	(6,297	)	$	(64	)	$	—	$	(6,361	)


Add: transaction costs										7,232

Adjusted EBITDA - discontinued operations									$	871
Reconciliation to Consolidated Statements of Income:
Transaction costs										(7,232	)
Interest expense, net										(2,274	)
Depreciation and amortization										(1,276	)
Gain on acquisition										8,468

Loss from discontinued operations									$	(1,443	)

Entertainment Properties Trust

Investment Information by Asset Type

As of March 31, 2011 and December 31, 2010

(Unaudited, dollars in thousands)


	As of March 31, 2011
	Retail/ Theatres			Public Charter Schools			Vineyards and Wineries			Metropolitan Ski Areas			Waterpark/ Concord Development			Consolidated
Rental properties, net of accumulated depreciation	$	1,662,182		$	4,279		$	189,198		$	11,435		$	—		$	1,867,094
Add back accumulated depreciation on rental properties		286,074			—			18,104			1,573			—			305,751
Land held for development		4,457			—			—			—			180,000			184,457
Property under development		8,638			—			—			—			—			8,638
Mortgage notes and related accrued interest receivable, net		—			—			—			136,410			170,517			306,927
Investment in a direct financing lease, net		—			229,801			—			—			—			229,801
Investment in joint ventures		23,570			—			—			—			—			23,570
Intangible assets, net of accumulated amortization		5,625			—			—			—			—			5,625
Add back accumulated amortization on intangible assets		9,049			—			—			—			—			9,049
Notes receivable and related accrued interest receivable, net		168			3,751			1,185			—			—			5,104

Total investments (1)	$	1,999,763		$	237,831		$	208,487		$	149,418		$	350,517		$	2,946,016

% of total investments		68	%		8	%		7	%		5	%		12	%		100	%

	As of December 31, 2010
	Retail/ Theatres			Public Charter Schools			Vineyards and Wineries			Metropolitan Ski Areas			Waterpark/ Concord Development			Consolidated
Rental properties, net of accumulated depreciation	$	1,822,689		$	—		$	192,422		$	11,512		$	—		$	2,026,623
Add back accumulated depreciation on rental properties		279,106			—			16,467			1,495			—			297,068
Land held for development		4,457			—			—			—			180,000			184,457
Property under development		5,967			—			—			—			—			5,967
Mortgage notes and related accrued interest receivable, net		—			—			—			136,410			168,994			305,404
Investment in a direct financing lease, net		—			226,433			—			—			—			226,433
Investment in joint ventures		22,010			—			—			—			—			22,010
Intangible assets, net of accumulated amortization		35,644			—			—			—			—			35,644
Add back accumulated amortization on intangible assets		11,479			—			—			—			—			11,479
Notes receivable and related accrued interest receivable, net		166			3,751			1,210			—			—			5,127

Total investments (1)	$	2,181,518		$	230,184		$	210,099		$	149,417		$	348,994		$	3,120,212


% of total investments		70	%		7	%		7	%		5	%		11	%		100	%

(1)	See pages 29 and 30 for definitions.

Entertainment Properties Trust

Lease Expirations Excluding Non-Theatre Retail

As of March 31, 2011

(Unaudited, dollars in thousands)


	Megaplex Theatres							Public Charter Schools							Vineyards and Wineries
Year	Total Number of Leases Expiring		Revenue for the Trailing Twelve Months Ended March 31, 2011 (1)		% of Total Rental Revenue			Total Number of Leases Expiring		Financing Income for the Trailing Twelve Months Ended March 31, 2011		% of Total Mortgage and other financing income			Total Number of Leases Expiring		Rental Revenue for the Twelve Months Ended March 31, 2011		% of Total Rental Revenue
2011		4		9,707		4	%		—		—		—			—		—		—
2012		3		7,333		3	%		—		—		—			—		—		—
2013		4		14,444		6	%		—		—		—			—		—		—
2014		—		—		—			—		—		—			—		—		—
2015		3		9,195		4	%		—		—		—			—		—		—
2016		2		3,993		2	%		—		—		—			—		—		—
2017		3		4,676		2	%		—		—		—			1		1,633		1	%
2018		17		24,666		10	%		—		—		—			4		9,230		4	%
2019		7		22,164		9	%		—		—		—			1		1,354		1	%
2020		7		8,854		4	%		—		—		—			—
2021		3		7,220		3	%		—		—		—			—		—		—
2022		9		15,951		7	%		—		—		—			—		—		—
2023		2		2,294		1	%		—		—		—			—		—		—
2024		8		14,432		6	%		—		—		—			—		—		—
2025		7		14,245		6	%		—		—		—			—		—		—
2026		5		7,126		3	%		—		—		—			—		—		—
2027		3		3,939		2	%		—		—		—			—		—		—
2028		1		1,060		0	%		—		—		—			—		—		—
2029		15		14,125		6	%		—		—		—			—		—		—
2030		—		—		—			—		—		—			—		—		—
Thereafter		4		314		0	%		27		26,648		50	%		—		—		—

		107	$	185,738		78	%		27	$	26,648		50	%		6	$	12,217		6	%

Note: This schedule relates to consolidated assets only and excludes non-theatre retail. One owned ski property is excluded from this schedule and the remaining ski property investments are held in mortgage notes receivable which are included on page 28.

(1)	Consists of rental revenue and tenant reimbursements.

Entertainment Properties Trust

Top Ten Customers by Revenue from Continuing Operations

(Unaudited, dollars in thousands)


Customers	Asset Type	Total Revenue For The Three Months Ended March 31, 2011		Percentage of Total Revenue

1. American Multi-Cinema, Inc.	Retail/Theatres	$	26,340		36	%

2. Rave Cinemas/Rave Review Cinemas	Retail/Theatres		7,187		10	%

3. Imagine Schools, Inc.	Public Charter Schools		6,866		9	%

4. Regal Cinemas, Inc.	Retail/Theatres		4,953		7	%

5. Cinemark USA, Inc.	Retail/Theatres		4,153		6	%

6. Peak Resorts, Inc.	Metropolitan Ski Areas		3,728		5	%

7. SVVI, LLC	Waterparks		2,966		4	%

8. Southern Theatres, LLC	Retail/Theatres		2,813		4	%

9. Ascentia Wine Estates, LLC	Vineyards and Wineries		1,066		1	%

10. Muvico Entertainment, LLC	Retail/Theatres		987		1	%


Total		$	61,059		83	%

Entertainment Properties Trust

Mortgage Notes Receivable

(Unaudited, dollars in thousands)

Summary of Mortgage Notes Receivable


	March 31, 2011		December 31, 2010
Mortgage note and related accrued interest receivable, 10.00%, due April 1, 2012	$	33,677	$	33,677
Mortgage notes and related accrued interest receivable, 7.00% and 10.00%, due May 1, 2019		170,517		168,994
Mortgage note, 9.67%, due March 10, 2027		8,000		8,000
Mortgage notes, 10.30%, due April 3, 2027		62,500		62,500
Mortgage note, 9.54%, due October 30, 2027		32,233		32,233

Total mortgage notes and related accrued interest receivable	$	306,927	$	305,404

Payments Due on Mortgage Notes Receivable


	As of March 31, 2011
Year:
2011	$	—
2012		33,677
2013		—
2014		—
2015		—
Thereafter		273,250

Total	$	306,927

Entertainment Properties Trust

Notes Receivable

(Unaudited, dollars in thousands)

Summary of Notes Receivable


	March 31, 2011			December 31, 2010
Note and related accrued interest receivable, 9.23%, due August 31, 2012	$	3,751		$	3,751
Note and related accrued interest receivable, 6.00%, due December 31, 2017		1,307			1,332
Notes and related accrued interest receivable, 12.00% to 15.00%, past due (1)		8,074			8,074
Other		168			166

Total notes and related accrued interest receivable	$	13,300		$	13,323
Less: Loan loss reserves		(8,196	)		(8,196	)

Total notes and related accrued interest receivable, net	$	5,104		$	5,127

(1)	Note receivable is impaired as of March 31, 2011 and is shown below as past due. In accordance with the Company’s accounting policy, interest income is being recognized on a cash basis.

Payments Due on Notes Receivable


	As of March 31, 2011
Year:
Past due (100% reserved)	$	8,074
2011		7
2012		3,751
2013		—
2014		—
2015		—
Thereafter		1,468

Total	$	13,300

Entertainment Properties Trust

Summary of Unconsolidated Joint Ventures

As of and for the Three Months Ended March 31, 2011

(Unaudited, dollars in thousands)

Atlantic EPR-I

EPR investment interest: 31.8%

EPR preferred interest: 15% priority return on $14.9 million

Income recognized for the three months ended March 31, 2011: $674

Distributions received for the three months ended March 31, 2011: $549

Unaudited condensed financial information for Atlantic-EPR I is as follows as of and for the three months ended March 31, 2011 and 2010:


	2011		2010
Rental properties, net	$	26,507	$	27,152
Cash		581		141
Long-term debt (paid in full, May 2010)		—		14,887
Partners’ equity		27,225		12,309
Rental revenue		1,130		1,108
Net income		407		619

Atlantic EPR-II

EPR investment interest: 23.9%

Income recognized for the three months ended March 31, 2011: $96

Distributions received for the three months ended March 31, 2011: $103

Unaudited condensed financial information for Atlantic-EPR II is as follows as of and for the three months ended March 31, 2011 and 2010:


	2011		2010
Rental properties, net	$	20,922	$	21,383
Cash		244		117
Long-term debt (due September 2013)		12,505		12,862
Note payable to Entertainment Properties Trust		117		117
Partners’ equity		8,180		8,289
Rental revenue		722		722
Net income		359		348

Ningbo PIC, Nanqiao PIC, Shanghai Himalaya PIC and Shanghai SFG-EPR Cinema

EPR investment interest: 30.0%, 49.0%, 49.0% and 49.0%, respectively

EPR investment: $4,231

Income recognized for the three months ended March 31, 2011: $4

Distributions received for the three months ended March 31, 2011: $0

Entertainment Properties Trust

Definitions-Non-GAAP Financial Measures

EBITDA AND ADJUSTED EBITDA

EBITDA is a widely used financial measure in many industries, including the REIT industry, and is presented to assist investors and analysts in analyzing the performance of the Company. Management utilizes EBITDA in its analysis of the business and operations of the Company and believes it is useful to investors because it excludes various items included in net income that are not indicative of operating performance, such as gains (or losses) from sales of property and depreciation and amortization and is used in computing various financial ratios as a measure of operational performance. The Company computes EBITDA - continuing operations as the sum of net income plus costs associated with loan refinancing, interest expense (net), depreciation and amortization, gain on acquisition of real estate, noncontrolling interests, equity in income from joint ventures and discontinued operations. EBITDA - discontinued operations is computed in the same manner but only as it relates to discontinued operations. Adjusted EBITDA - continuing operations is presented to also add back the effect of non-cash impairment charges, the provision for loan losses and transaction costs. Adjusted EBITDA - discontinued operations is computed in the same manner but only as it relates to discontinued operations.

The Company’s method of calculating EBITDA and Adjusted EBITDA may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. EBITDA and Adjusted EBITDA do not represent cash generated from operations as defined by U.S. generally accepted accounting principles (“GAAP”) and are not indicative of cash available to fund all cash needs, including distributions. These measures should not be considered as an alternative to net income for the purpose of evaluating the Company’s performance or to cash flows as a measure of liquidity.

FUNDS FROM OPERATIONS (“FFO”)

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. FFO, as defined under the NAREIT definition and presented by us, is net income available to common shareholders, computed in accordance with GAAP, excluding gains and losses from sales of depreciable operating properties, 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. 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.

ADJUSTED FUNDS FROM OPERATIONS (“AFFO”)

In addition to FFO, we present AFFO by adding to FFO non-cash impairment charges, provision for loan losses, transaction costs, non-real estate depreciation and amortization, deferred financing fees amortization, costs associated with loan refinancing, share-based compensation expense to management and trustees and amortization of above market leases, net; and subtracting maintenance capital expenditures (including second generation tenant improvements and leasing commissions), straight-lined rental revenue, the non-cash portion of mortgage and other financing income and gain on acquisition. AFFO 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 and management provides AFFO herein because it believes this information is useful to investors in this regard. AFFO is a non-GAAP financial measure. AFFO 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 AFFO the same way so comparisons with other REITs may not be meaningful.

Entertainment Properties Trust

Definitions-Non-GAAP Financial Measures

INTEREST COVERAGE RATIO

The interest coverage ratio is calculated as the interest coverage amount divided by interest expense, gross. We calculate the interest coverage amount by adding to net income impairment charges, provision for loan losses, transaction costs, interest expense, gross (including interest expense in discontinued operations), depreciation and amortization, share-based compensation expense to management and trustee and costs associated with loan refinancing; subtracting interest cost capitalized, straight-line revenue, gain or loss on sale of real estate from discontinued operations and gain on acquisition. We calculated interest expense, gross, by adding to interest expense, net, interest income and interest cost capitalized. We consider the interest coverage ratio to be an appropriate supplemental measure of a company’s ability to meet its interest expense obligations and management believes it is useful to investors in this regard. Our calculation of the interest coverage ratio may be different from the calculation used by other companies, and therefore, comparability may be limited. This information should not be considered as an alternative to any GAAP liquidity measures.

FIXED CHARGE COVERAGE RATIO

The fixed charge coverage ratio is calculated in exactly the same manner as the interest coverage ratio, except that preferred share dividends are also added to the denominator. We consider the fixed charge coverage ratio to be an appropriate supplemental measure of a company’s ability to make its interest and preferred share dividend payments and management believes it is useful to investors in this regard. Our calculation of the fixed charge coverage ratio may be different from the calculation used by other companies and, therefore, comparability may be limited. This information should not be considered as an alternative to any GAAP liquidity measures.

DEBT SERVICE COVERAGE RATIO

The debt service coverage ratio is calculated in exactly the same manner as the interest coverage ratio, except that recurring principal payments are also added to the denominator. We consider the debt service coverage ratio to be an appropriate supplemental measure of a company’s ability to make its debt service payments and management believes it is useful to investors in this regard. Our calculation of the debt service coverage ratio may be different from the calculation used by other companies and, therefore, comparability may be limited. This information should not be considered as an alternative to any GAAP liquidity measures.

TOTAL INVESTMENTS

Total investments is a non-GAAP financial measure defined as the sum of the carrying values of rental properties (before accumulated depreciation), land held for development, property under development, mortgage notes receivable (including related accrued interest receivable), investment in a direct financing lease, net, investment in joint ventures, intangible assets (before accumulated amortization) and notes receivable and related accrued interest receivable, net. Total investments is a useful measure for management and investors as it illustrates across which asset categories the Company’s funds have been invested.