Epr Properties (EPR) 10-Q Quarterly Report Thu Nov 04 2021

R Properties (NYSE:EPR) today announced operating results for the third quarter and nine months ended September 30, 2021 (dollars in thousands, except per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020 (2)		2021		2020 (2)
Total revenue	$	139,647	$	63,877	$	376,774	$	321,249
Net income (loss) available to common shareholders	26,084		(91,938)		35,949		(129,853)
Net income (loss) available to common shareholders per diluted common share	0.35		(1.23)		0.48		(1.70)


Funds From Operations as adjusted (FFOAA) (1)	64,166		(11,699)		150,413		95,645
FFOAA per diluted common share (1)	0.86		(0.16)		2.01		1.25
Adjusted Funds From Operations (AFFO) (1)	68,716		2,698		160,647		126,078
AFFO per diluted common share (1)	0.92		0.04		2.15		1.65

(1) A non-GAAP financial measure
(2) The operating results for the three and nine months ended September 30, 2020, include $49.8 million of straight-line and other receivable write-offs, or $0.67 per diluted share, related to moving two customers to cash basis for revenue recognition purposes at the end of the third quarter in 2020. These write-offs are reflected in all metrics in these columns except that AFFO per diluted share for the three and nine months ended September 30, 2020 excludes the impact of the straight-line portion of these write-offs totaling $23.9 million.

Third Quarter Company Headlines

•Quarterly Collections Continue to Exceed Expectations - Cash collections from customers continued to exceed expectations and were approximately 90% of contractual cash revenue for the third quarter of 2021. In addition, during the third quarter, the Company collected a total of $11.3 million of deferred rent and interest as well as $5.3 million on a previously reserved note receivable.

•New $1.0 Billion Revolving Credit Facility - In early October 2021, the Company entered into a new amended and restated $1.0 billion revolving credit facility that matures in October 2025 with options to extend for a total of 12 additional months, subject to conditions.

•Rating Agency Upgrades - During September 2021, the Company received an investment grade rating from S&P on its unsecured debt with a stable outlook, adding to its current investment grade rating from Moody's, who raised its outlook to stable during October 2021.

•Successful Debt Issuance Lowers Cost of Capital and Extends Maturities – In October 2021, the Company closed on a public offering of $400.0 million in unsecured notes due in November 2031 with an interest rate of 3.60%, a record low coupon for the Company, and provided notice that all $275.0 million of its 5.25% senior notes due in 2023 will be redeemed (including a make-whole premium) on November 12, 2021. Following this redemption, the Company will have no scheduled debt maturities until 2024.

•Strong Liquidity Position – In September 2021, the Company repaid its $400.0 million unsecured term loan facility, and as of September 30, 2021, the Company had cash on hand of $144.4 million and no borrowings on its $1.0 billion unsecured revolving credit facility. Furthermore, the net debt issuance described above provides additional liquidity.

CEO Comments

"The strength of the consumer-led recovery across our experiential properties was illustrated by our increased level of cash collections which exceeded our expectations," stated Greg Silvers, President and CEO of EPR Properties. "Our sustained progress has also been recognized by the ratings agencies as evidenced by our recent upgrades. We have also solidified our balance sheet position and enhanced our liquidity with a new $1.0 billion credit facility and $400.0 million debt issuance. With an active pipeline, we are well-positioned to reaccelerate our growth and expand our portfolio with diversified experiential properties."

Collections

Cash collections from both accrual and cash basis tenants and borrowers continued to exceed expectations and were approximately $124.5 million or 90% of contractual cash revenue for the third quarter. Contractual cash revenue is an

The following information was filed by Epr Properties (EPR) on Wednesday, November 3, 2021 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-Q Quarterly 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-Q Quarterly Report:

Revenue - Product Highlight
Results of Operations Three and nine months ended September 30, 2021 compared to the three and nine months ended September 30, 2020 Analysis of Revenue The following table summarizes our total revenue (dollars in thousands): (1) For the three months ended September 30, 2021 compared to the three months ended September 30, 2020, the increase in minimum rent resulted primarily from an increase of $47.7 million related to rental revenue on existing properties including improved collections of rent being recognized on a cash basis, less receivable write-offs as well as scheduled rent increases.

Revenue - Product Highlight
For the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020, the increase in minimum rent resulted primarily from an increase of $34.9 million related to rental revenue on existing properties including improved collections of rent being recognized on a cash basis, less receivable write-offs as well as scheduled rent increases.
Financial - Expense Highlight
FFOAA is presented by adding to FFO costs associated with loan refinancing or payoff, transaction costs, severance expense, preferred share redemption costs, impairment of operating lease right-of-use assets and credit loss (benefit) expense and subtracting gain on insurance recovery and deferred income tax (benefit) expense.
Financial - Expense Highlight
Additionally, the decrease in credit loss expense was due to a change in the expectation in the credit loss model of the timing of the economic recovery from the impacts of the COVID-19 pandemic as well as an improvement in macroeconomic factors.
Revenue - Product Highlight
This increase was partially offset by a reduction in straight-line rental revenue due to revenue from several tenants being recognized on a cash basis.
Financial - Expense
(6) The decrease in depreciation...Read more
Financial - Cash Flow
During 2020 and the nine...Read more
Financial - Expense
We define Adjusted EBITDAre as...Read more
Financial - Expense
Analysis of Expenses and Other...Read more
Financial - Shares
AFFO is presented by adding...Read more
Other - Other
Actual results and experience could...Read more
Financial - Expense
(3) The decrease in interest...Read more
Other - Other
(3) The increase in straight-line...Read more
Other - Other
Due to improved financial performance,...Read more
Other - Other
Adjusted EBITDAre is not a...Read more
Other - Other
Following our election to terminate...Read more
Financial - Shares
Overview Business Our principal business...Read more
Financial - Earnings
FFO, FFOAA and AFFO are...Read more
Financial - Debt
Liquidity Analysis We currently anticipate...Read more
Financial - Income
This was partially offset by...Read more
Other - Other
Management believes Adjusted EBITDAre is...Read more
M & A - Other
Net proceeds from the note...Read more
Other - Other
These bonds expire upon the...Read more
Revenue - Geography
Our method of calculating Adjusted...Read more
Other - Other
40 (2) The increase in...Read more
Financial - Shares
The following table summarizes our...Read more
Financial - Expense
It has been our strategy...Read more
Revenue - Product
Subsequent to September 30, 2021,...Read more
Other - Other
34 Historically, our primary challenges...Read more
Other - Other
In limited cases, tenants may...Read more
Financial - Income
Additionally, during the three and...Read more
Revenue - Product
The amounts not booked as...Read more
Financial - Debt
We expect to finance these...Read more
Revenue - Product
Contractual cash revenue is an...Read more
Financial - Expense
Our primary use of cash...Read more
Other - Other
A reconciliation of total investments...Read more
Other - Other
The COVID-19 pandemic severely impacted...Read more
Other - Other
We may also fund investments...Read more
Other - Other
See "Non-GAAP Financial Measures" for...Read more
Revenue - Product
This was partially offset by...Read more
Revenue - Product
This was partially offset by...Read more
Financial - Income
(5) The increase in other...Read more
Other - Other
Effective July 13, 2021, we...Read more
Other - Other
(2) Includes maintenance capital expenditures...Read more
Revenue - Product
In these circumstances upon an...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Epr Properties provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: EPR
CIK: 1045450
Form Type: 10-Q Quarterly Report
Accession Number: 0001045450-21-000067
Submitted to the SEC: Thu Nov 04 2021 9:24:29 AM EST
Accepted by the SEC: Thu Nov 04 2021
Period: Thursday, September 30, 2021
Industry: Real Estate Investment Trusts