Epr Properties (EPR) 10-K Annual Report February 2020

Kansas City, MO, February 24 , 2020 -- EPR Properties (NYSE:EPR) today announced operating results for the fourth quarter and year ended December 31, 2019 (dollars in millions, except per share data):



	Three Months Ended December 31,				Year Ended December 31,
	2019		2018		2019		2018
Total revenue from continuing operations (1)	$	170.3	$	150.9	$	652.0	$	639.9
Net income available to common shareholders	30.3		48.0		178.1		242.8
Net income available to common shareholders per diluted common share	0.39		0.65		2.32		3.27
Funds From Operations as adjusted (FFOAA) (a non-GAAP financial measure)	99.7		105.1		423.2		460.4
FFOAA per diluted common share (a non-GAAP financial measure)	1.26		1.39		5.44		6.10

(1) Total revenue from continuing operations for the three months and year ended December 31, 2018 included $4.0 million and $71.3 million, respectively, in prepayment fees related to the pay-off of non-Education mortgage notes.

Fourth Quarter Company Headlines


•	Experiential focus announced in November in conjunction with sale of public charter school portfolio


•	Solid fourth quarter caps off another highly productive year


•	Guidance introduced for 2020; Significant capital redeployment anticipated


•	Monthly dividend increase for common shares announced

CEO Comments

“We had a strong finish to a very productive year,” stated Greg Silvers, President and CEO. “The sale of our public charter school portfolio marked a milestone in refocusing our growth on experiential real estate, which allows us to capitalize on both our extensive history in this sector and the trend of increasing consumer experiential spending. The ongoing durability in our tenant industries offers earnings stability and substantial growth opportunities, positioning us to continue building the premier experiential real estate portfolio.”

Portfolio Update

As previously announced and further described below, during the fourth quarter, the Company sold the largest portion of its Education portfolio, public charter schools, and is now strategically focused on investing in Experiential properties which the Company believes is a highly enduring and growing sector of the real estate industry. With this change, the Company now classifies its Entertainment and Recreation portfolios as Experiential while its remaining Education portfolio consists primarily of traditional net leases providing additional geographic and operator diversity. The Company's total investments (a non-GAAP financial measure) were approximately $6.7 billion at December 31, 2019 with Experiential totaling $6.0 billion, or 89%, and Education totaling $0.7 billion, or 11%.

The Company's Experiential portfolio (excluding property under development) consisted of the following property types (owned or financed) at December 31, 2019:


•	179 theatre properties;


•	55 eat & play properties (including seven theatres located in entertainment districts);


•	18 attraction properties;


•	13 ski properties;


•	six experiential lodging properties;


•	one gaming property;

The following information was filed by Epr Properties (EPR) on Monday, February 24, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Epr Properties's 10-K Annual Report:

Financial - Expense Highlight
FFOAA is presented by adding to FFO costs (gain) associated with loan refinancing or payoff, net, transaction costs, severance expense, litigation settlement expense, preferred share redemption costs, termination fees associated with tenants' exercises of public charter school buy-out options, impairment of direct financing leases (allowance for lease loss portion) and provision for loan losses and subtracting gain on early extinguishment of debt, gain on insurance recovery and deferred income tax (benefit) expense.

Financial - Expense Highlight
Our leases are generally triple-net leases requiring the tenants to pay substantially all expenses associated with the operation of the properties, thereby minimizing our exposure to increases in costs and operating expenses resulting from inflation.
Financial - Dividend Highlight
Additionally, on June 3, 2019, we filed a shelf registration statement with the SEC, which is effective for a term of three years, for our Dividend Reinvestment and Direct Share Purchase Plan ("DSP Plan") which permits the issuance of up to 15,000,000 common shares.
Financial - Income Highlight
(9) The change in income tax benefit for the year ended December 31, 2019 compared to the income tax expense for the year ended December 31, 2018 is primarily related to lower deferred taxes due to the treatment of pre-opening costs and other expected tax losses for the Kartrite Resort, as well as certain expenses related to our Canadian trust.
Financial - Expense Highlight
We define Adjusted EBITDA as EBITDAre (defined above) for the quarter excluding gain on insurance recovery, severance expense, litigation settlement expense, impairment of direct financing lease (allowance for lease loss portion), the provision for loan losses, transaction costs and prepayment fees.
Financial - Expense
To the extent any of...Read more
Financial - Expense
The following table summarizes our...Read more
Financial - Expense
The following table summarizes our...Read more
M & A - Other
If the acquisition is determined...Read more
Financial - Shares
AFFO is presented by adding...Read more
Financial - Income
(3) The increase in mortgage...Read more
Other - Other
Adjusted EBITDA is not a...Read more
Financial - Shares
We calculate our total market...Read more
Financial - Income
For further information on our...Read more
Financial - Shares
Our principal business objective is...Read more
Financial - Expense
(7) The increase in depreciation...Read more
Financial - Expense
(5) The increase in depreciation...Read more
Other - Other
Management believes Adjusted EBITDA is...Read more
Financial - Expense
During inflationary periods, which are...Read more
Other - Other
These bonds expire upon the...Read more
Revenue - Geography
Our method of calculating Adjusted...Read more
Financial - Shares
(9) Preferred share redemption costs...Read more
Revenue - Product
We recognized an impairment on...Read more
Other - Other
Our total investment spending for...Read more
Revenue - Product
We sold ten public charter...Read more
Revenue - Product
We sold seven public charter...Read more
Revenue - Product
To the extent inflation causes...Read more
Financial - Income
This was partially offset by...Read more
Revenue - Product
We recognized a combined gain...Read more
Other - Other
During the year ended December...Read more
Other - Other
During the year ended December...Read more
Financial - Expense
Costs related to such transactions,...Read more
Other - Other
On June 3, 2019, we...Read more
Financial - Expense
It has been our strategy...Read more
Financial - Cash Flow
When a loan is considered...Read more
Other - Other
Historically, our primary challenges have...Read more
Financial - Expense
Additional consideration was paid of...Read more
Financial - Earnings
FFO, FFOAA and AFFO are...Read more
Financial - Debt
We expect to finance these...Read more
Financial - Debt
Our unsecured credit facilities and...Read more
Other - Other
We received $27.6 million in...Read more
Other - Other
We may also fund investments...Read more
Other - Other
We used the net proceeds...Read more
Revenue - Product
Year ended December 31, 2019...Read more
Other - Other
See "Non-GAAP Financial Measures" for...Read more
Revenue - Product
These increases were partially offset...Read more
Financial - Cash Flow
The table below summarizes our...Read more
Other - Other
(2) Includes maintenance capital expenditures...Read more
Financial - Expense
Costs associated with loan refinancing...Read more
Financial - Income
(6) The decrease in mortgage...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Material Contracts, Statements, Certifications & more

Epr Properties provided additional information to their SEC Filing as exhibits

Exhibit 4.13: Instruments Defining The Rights Of Security Holders, Including Indentures

Exhibit 10.15: Material Contract

Exhibit 21: Subsidiaries Of The Company

Exhibit 23: Consent Of Kpmg Llp

Exhibit 31.1: Certification Of Gregory K. Silvers Pursuant To Section 302

Exhibit 31.2: Certification Of Mark A. Peterson Pursuant To Section 302

Exhibit 32.1: Certification By Ceo Pursuant To 18 Usc 1350

Exhibit 32.2: Certification Of Cfo Pursuant To 18 Usc 1350

Ticker: EPR
CIK: 1045450
Form Type: 10-K Annual Report
Accession Number: 0001045450-20-000019
Submitted to the SEC: Tue Feb 25 2020 10:28:25 AM EST
Accepted by the SEC: Tue Feb 25 2020
Period: Tuesday, December 31, 2019
Industry: Real Estate Investment Trusts