Document


	Three Months Ended March 31,
	2024		2023
Total revenue	$	167,232	$	171,396
Net income available to common shareholders	56,677		51,624
Net income available to common shareholders per diluted common share	0.75		0.69


Funds From Operations as adjusted (FFOAA)(1)	85,723		96,006
FFOAA per diluted common share (1)	1.13		1.26
Adjusted Funds From Operations (AFFO) (1)	85,675		98,734
AFFO per diluted common share (1)	1.12		1.30

Note: Each of the measures above include deferred rent and interest collections from cash basis customers that were recognized as revenue of $0.6 million and $6.5 million for the three months ended March 31, 2024 and 2023, respectively.
(1) A non-GAAP financial measure.

•Confirms 2024 Guidance - The Company is confirming FFOAA per diluted common share guidance for 2024 of $4.76 to $4.96, representing an increase of 3.2% at the midpoint over 2023 after excluding the impact from both years of out-of-period deferred rent and interest collections from cash-basis customers included in income. The Company is also confirming investment spending guidance for 2024 of $200.0 million to $300.0 million and disposition proceeds guidance of $50.0 million to $75.0 million.

“During the first quarter, we continued the positive momentum we experienced last year, as we focus on driving long-term reliable earnings growth,” stated Company Chairman and CEO Greg Silvers. “We are pleased to continue to source attractive relationship-based opportunities to deploy capital into experiential assets across our target experiential property types. We remain disciplined in an ongoing uncertain environment and with our progress to date and supported by our strong liquidity position, we are confirming investment spending guidance for the year."

The Company's investment spending during the three months ended March 31, 2024 totaled $85.7 million and included $33.4 million for the acquisition of an attraction property in New York and $14.7 million for the acquisition and financing of land for two build-to-suit eat & play developments in Kansas and Illinois, respectively. Investment spending for the quarter also included experiential build-to-suit development and redevelopment projects.

As of March 31, 2024, the Company has committed an additional approximately $220.0 million for experiential development and redevelopment projects, which is expected to be funded over the next two years. The Company will continue to be more selective in making investments, utilizing cash on hand, excess cash flow, disposition proceeds and borrowings under our line of credit, until such time as the Company's cost of capital improves.

The Company is confirming its 2024 earnings guidance for FFOAA per diluted common share of $4.76 to $4.96, representing an increase of 3.2% at the midpoint over 2023 after excluding the impact from both years of out-of-period deferred rent and interest collections from cash-basis customers included in income. The 2024 guidance for FFOAA per diluted common share is based on a FFO per diluted common share range of $4.68 to $4.88 adjusted for retirement and severance expense, transaction costs, provision (benefit) for credit losses, net, and deferred income tax expense. FFO per diluted common share for 2024 is based on a net income available to common shareholders per diluted common share range of $2.68 to $2.88 plus estimated real estate depreciation and amortization of $2.16 and allocated share of joint venture depreciation of $0.13, less estimated gain on sale of real estate of $0.24 and the impact of Series C and Series E dilution of $0.05 (in accordance with the NAREIT definition of FFO).

Management will host a conference call to discuss the Company's financial results on May 2, 2024 at 8:30 a.m. Eastern Time. The call may also include discussion of Company developments and forward-looking and other material information about business and financial matters. The conference will be webcast and can be accessed via the Webcasts page in the Investor Center on the Company's website located at https://investors.eprkc.com/webcasts. To access the audio-only call, visit the Webcasts page for the link to register and receive dial-in information and a PIN providing access to the live call. It is recommended that you join 10 minutes prior to the start of the event (although you may register and dial-in at any time during the call).


	Three Months Ended March 31,
	2024		2023
Rental revenue	$	142,281	$	151,591
Other income	12,037		9,333
Mortgage and other financing income	12,914		10,472
Total revenue	167,232		171,396
Property operating expense	14,920		14,155
Other expense	12,976		8,950
General and administrative expense	13,908		13,965
Retirement and severance expense	1,836		—

Transaction costs	1		270
Provision (benefit) for credit losses, net	2,737		587

Depreciation and amortization	40,469		41,204
Total operating expenses	86,847		79,131
Gain (loss) on sale of real estate	17,949		(560)

Income from operations	98,334		91,705


Interest expense, net	31,651		31,722
Equity in loss from joint ventures	3,627		1,985

Income before income taxes	63,056		57,998
Income tax expense	347		341
Net income	$	62,709	$	57,657










Preferred dividend requirements	6,032		6,033

Net income available to common shareholders of EPR Properties	$	56,677	$	51,624
Net income available to common shareholders of EPR Properties per share:


Basic	$	0.75	$	0.69



Diluted	$	0.75	$	0.69
Shares used for computation (in thousands):
Basic	75,398		75,084
Diluted	75,705		75,283



	March 31, 2024		December 31, 2023
Assets
Real estate investments, net of accumulated depreciation of $1,470,507 and $1,435,683 at March 31, 2024 and December 31, 2023, respectively	$	4,629,859	$	4,537,359
Land held for development	20,168		20,168
Property under development	36,138		131,265
Operating lease right-of-use assets	183,031		186,628
Mortgage notes and related accrued interest receivable, net	578,915		569,768

Investment in joint ventures	46,127		49,754
Cash and cash equivalents	59,476		78,079
Restricted cash	2,929		2,902

Accounts receivable	69,414		63,655

Other assets	67,979		61,307
Total assets	$	5,694,036	$	5,700,885
Liabilities and Equity
Accounts payable and accrued liabilities	$	84,153	$	94,927
Operating lease liabilities	223,077		226,961
Dividends payable	28,950		31,307
Unearned rents and interest	91,829		77,440
Debt	2,817,710		2,816,095
Total liabilities	3,245,719		3,246,730


Total equity	$	2,448,317	$	2,454,155
Total liabilities and equity	$	5,694,036	$	5,700,885

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. Pursuant to the definition of FFO by the Board of Governors of NAREIT, the Company calculates FFO as net income available to common shareholders, computed in accordance with GAAP, excluding gains and losses from disposition of real estate and impairment losses on real estate, 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. The Company has calculated FFO for all periods presented in accordance with this definition.

In addition to FFO, the Company presents FFOAA and AFFO. FFOAA is presented by adding to FFO retirement and severance expense, transaction costs, provision (benefit) for credit losses, net, costs associated with loan refinancing or payoff, preferred share redemption costs and impairment of operating lease right-of-use assets and subtracting sale participation income, gain on insurance recovery and deferred income tax (benefit) expense. AFFO is presented by adding to FFOAA non-real estate depreciation and amortization, deferred financing fees amortization and share-based compensation expense to management and Trustees; and subtracting amortization of above and below market leases, net and tenant allowances, maintenance capital expenditures (including second generation tenant improvements and leasing commissions), straight-lined rental revenue (removing the impact of straight-lined ground sublease expense), and the non-cash portion of mortgage and other financing income.

FFO, FFOAA and AFFO are widely used measures of the operating performance of real estate companies and are provided here as supplemental measures to GAAP net income available to common shareholders and earnings per share, and management provides FFO, FFOAA and AFFO herein because it believes this information is useful to investors in this regard. FFO, FFOAA and AFFO are non-GAAP financial measures. FFO, FFOAA and AFFO do not represent cash flows from operations as defined by GAAP and are not indicative that cash flows are adequate to fund all cash needs and are not to be considered alternatives 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, FFOAA and AFFO the same way so comparisons with other REITs may not be meaningful.


	Three Months Ended March 31,
	2024		2023
FFO:
Net income available to common shareholders of EPR Properties	$	56,677	$	51,624
(Gain) loss on sale of real estate	(17,949)		560


Real estate depreciation and amortization	40,282		41,000
Allocated share of joint venture depreciation	2,416		2,055

FFO available to common shareholders of EPR Properties	$	81,426	$	95,239

FFO available to common shareholders of EPR Properties	$	81,426	$	95,239
Add: Preferred dividends for Series C preferred shares	1,938		1,938
Add: Preferred dividends for Series E preferred shares	1,938		1,938
Diluted FFO available to common shareholders of EPR Properties	$	85,302	$	99,115

FFOAA:
FFO available to common shareholders of EPR Properties	$	81,426	$	95,239

Retirement and severance expense	1,836		—
Transaction costs	1		270



Provision (benefit) for credit losses, net	2,737		587




Deferred income tax benefit	(277)		(90)
FFOAA available to common shareholders of EPR Properties	$	85,723	$	96,006

FFOAA available to common shareholders of EPR Properties	$	85,723	$	96,006
Add: Preferred dividends for Series C preferred shares	1,938		1,938
Add: Preferred dividends for Series E preferred shares	1,938		1,938
Diluted FFOAA available to common shareholders of EPR Properties	$	89,599	$	99,882

AFFO:
FFOAA available to common shareholders of EPR Properties	$	85,723	$	96,006
Non-real estate depreciation and amortization	187		204
Deferred financing fees amortization	2,212		2,129
Share-based compensation expense to management and trustees	3,692		4,322
Amortization of above and below market leases, net and tenant allowances	(84)		(89)
Maintenance capital expenditures (1)	(1,555)		(2,176)
Straight-lined rental revenue	(3,670)		(2,105)
Straight-lined ground sublease expense	32		565
Non-cash portion of mortgage and other financing income	(862)		(122)
AFFO available to common shareholders of EPR Properties	$	85,675	$	98,734

AFFO available to common shareholders of EPR Properties	$	85,675	$	98,734
Add: Preferred dividends for Series C preferred shares	1,938		1,938
Add: Preferred dividends for Series E preferred shares	1,938		1,938
Diluted AFFO available to common shareholders of EPR Properties	$	89,551	$	102,610


	Three Months Ended March 31,
	2024		2023

FFO per common share:
Basic	$	1.08	$	1.27
Diluted	1.07		1.25
FFOAA per common share:
Basic	$	1.14	$	1.28
Diluted	1.13		1.26
AFFO per common share:
Basic	$	1.14	$	1.31
Diluted	1.12		1.30
Shares used for computation (in thousands):
Basic	75,398		75,084
Diluted	75,705		75,283

Weighted average shares outstanding-diluted EPS	75,705		75,283
Effect of dilutive Series C preferred shares	2,301		2,272

Effect of dilutive Series E preferred shares	1,663		1,663
Adjusted weighted average shares outstanding-diluted Series C and Series E	79,669		79,218
Other financial information:

Dividends per common share	$	0.8350	$	0.8250

The conversion of the 5.75% Series C cumulative convertible preferred shares and the 9.00% Series E cumulative convertible preferred shares would be dilutive to FFO, FFOAA and AFFO per share for the three months ended March 31, 2024 and 2023. Therefore, the additional common shares that would result from the conversion and the corresponding add-back of the preferred dividends declared on those shares are included in the calculation of diluted FFO, FFOAA and AFFO per share for those periods.

Net Debt represents debt (reported in accordance with GAAP) adjusted to exclude deferred financing costs, net and reduced for cash and cash equivalents. By excluding deferred financing costs, net, and reducing debt for cash and cash equivalents on hand, the result provides an estimate of the contractual amount of borrowed capital to be repaid, net of cash available to repay it. The Company believes this calculation constitutes a beneficial supplemental non-GAAP financial disclosure to investors in understanding our financial condition. The Company's method of calculating Net Debt may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.

Gross Assets represents total assets (reported in accordance with GAAP) adjusted to exclude accumulated depreciation and reduced for cash and cash equivalents. By excluding accumulated depreciation and reducing cash and cash equivalents, the result provides an estimate of the investment made by the Company. The Company believes that investors commonly use versions of this calculation in a similar manner. The Company's method of calculating Gross Assets may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.

Net Debt to Gross Assets Ratio is a supplemental measure derived from non-GAAP financial measures that the Company uses to evaluate capital structure and the magnitude of debt to gross assets. The Company believes that investors commonly use versions of this ratio in a similar manner. The Company's method of calculating the Net Debt to Gross Assets Ratio may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.

NAREIT developed EBITDAre as a relative non-GAAP financial measure of REITs, independent of a company's capital structure, to provide a uniform basis to measure the enterprise value of a company. Pursuant to the definition of EBITDAre by the Board of Governors of NAREIT, the Company calculates EBITDAre as net income, computed in accordance with GAAP, excluding interest expense (net), income tax (benefit) expense, depreciation and amortization, gains and losses from dispositions of real estate, impairment losses on real estate, costs associated with loan refinancing or payoff and adjustments for unconsolidated partnerships, joint ventures and other affiliates.

Management provides EBITDAre herein because it believes this information is useful to investors as a supplemental performance measure because it can help facilitate comparisons of operating performance between periods and with other REITs. The Company's method of calculating EBITDAre may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. EBITDAre is not a measure of performance under GAAP, does not represent cash generated from operations as defined by GAAP and is not indicative of cash available to fund all cash needs, including distributions. This measure should not be considered an alternative to net income or any other GAAP measure as a measurement of the results of the Company's operations or cash flows or liquidity as defined by GAAP.

Management uses Adjusted EBITDAre in its analysis of the performance of the business and operations of the Company. Management believes Adjusted EBITDAre is useful to investors because it excludes various items that management believes are not indicative of operating performance, and because it is an informative measure to use in computing various financial ratios to evaluate the Company. The Company defines Adjusted EBITDAre as EBITDAre (defined above) for the quarter excluding sale participation income, gain on insurance recovery, retirement and severance expense, transaction costs, provision (benefit) for credit losses, net, impairment losses on operating lease right-of-use assets and prepayment fees.

The Company's method of calculating Adjusted EBITDAre may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. Adjusted EBITDAre is not a measure of performance under GAAP, does not represent cash generated from operations as defined by GAAP and is not indicative of cash available to fund all cash needs, including distributions. This measure should not be considered as an alternative to net income or any other GAAP measure as a measurement of the results of the Company's operations or cash flows or liquidity as defined by GAAP.

Net Debt to Adjusted EBITDAre Ratio is a supplemental measure derived from non-GAAP financial measures that the Company uses to evaluate our capital structure and the magnitude of our debt against our operating performance. The Company believes that investors commonly use versions of this ratio in a similar manner. In addition, financial institutions use versions of this ratio in connection with debt agreements to set pricing and covenant limitations. The Company's method of calculating the Net Debt to Adjusted EBITDAre Ratio may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.


	March 31,
	2024			2023
Net Debt:
Debt	$	2,817,710		$	2,811,653
Deferred financing costs, net	23,519			29,576
Cash and cash equivalents	(59,476)			(96,438)
Net Debt	$	2,781,753		$	2,744,791

Gross Assets:
Total Assets	$	5,694,036		$	5,756,615
Accumulated depreciation	1,470,507			1,341,527
Cash and cash equivalents	(59,476)			(96,438)
Gross Assets	$	7,105,067		$	7,001,704

Debt to Total Assets Ratio	49		%	49		%
Net Debt to Gross Assets Ratio	39		%	39		%

	Three Months Ended March 31,
	2024			2023
EBITDAre and Adjusted EBITDAre:
Net income	$	62,709		$	57,657
Interest expense, net	31,651			31,722
Income tax expense	347			341
Depreciation and amortization	40,469			41,204
(Gain) loss on sale of real estate	(17,949)			560






Allocated share of joint venture depreciation	2,416			2,055
Allocated share of joint venture interest expense	2,131			2,083

EBITDAre	$	121,774		$	135,622



Retirement and severance expense	1,836			—


Transaction costs	1			270
Provision (benefit) for credit losses, net	2,737			587




Adjusted EBITDAre	$	126,348		$	136,479

Adjusted EBITDAre (annualized) (1)	$	505,392		$	545,916

Net Debt/Adjusted EBITDAre Ratio	5.5			5.0

































(1) Adjusted EBITDA for the quarter is multiplied by four to calculate an annualized amount but does not include the annualization of investments put in service, acquired or disposed of during the quarter, as well as the potential earnings on property under development, the annualization of percentage rent and participating interest and adjustments for other items. See detailed calculation and reconciliation of Annualized Adjusted EBITDAre and Net Debt/Annualized EBITDAre ratio that includes these adjustments in the Company's Supplemental Operating and Financial Data for the quarter ended March 31, 2024.

Total investments is a non-GAAP financial measure defined as the sum of the carrying values of real estate investments (before accumulated depreciation), land held for development, property under development, mortgage notes receivable and related accrued interest receivable, net, investment in joint ventures, intangible assets, gross (before accumulated amortization and included in other assets) and notes receivable and related accrued interest receivable, net (included in other assets). Total investments is a useful measure for management and investors as it illustrates across which asset categories the Company's funds have been invested. Our method of calculating total investments may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. A reconciliation of total assets (computed in accordance with GAAP) to total investments is included in the following table (unaudited, in thousands):


	March 31, 2024		December 31, 2023

Total assets	$	5,694,036	$	5,700,885
Operating lease right-of-use assets	(183,031)		(186,628)
Cash and cash equivalents	(59,476)		(78,079)
Restricted cash	(2,929)		(2,902)
Accounts receivable	(69,414)		(63,655)
Add: accumulated depreciation on real estate investments	1,470,507		1,435,683
Add: accumulated amortization on intangible assets (1)	30,934		30,589
Prepaid expenses and other current assets (1)	(30,093)		(22,718)
Total investments	$	6,850,534	$	6,813,175

Total Investments:
Real estate investments, net of accumulated depreciation	$	4,629,859	$	4,537,359
Add back accumulated depreciation on real estate investments	1,470,507		1,435,683
Land held for development	20,168		20,168
Property under development	36,138		131,265
Mortgage notes and related accrued interest receivable, net	578,915		569,768

Investment in joint ventures	46,127		49,754
Intangible assets, gross (1)	65,073		65,299
Notes receivable and related accrued interest receivable, net (1)	3,747		3,879
Total investments	$	6,850,534	$	6,813,175

(1) Included in other assets in the accompanying consolidated balance sheet. Other assets include the following:

	March 31, 2024		December 31, 2023
Intangible assets, gross	$	65,073	$	65,299
Less: accumulated amortization on intangible assets	(30,934)		(30,589)
Notes receivable and related accrued interest receivable, net	3,747		3,879
Prepaid expenses and other current assets	30,093		22,718
Total other assets	$	67,979	$	61,307

EPR Properties (NYSE:EPR) is the leading diversified experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues that create value by facilitating out of home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have total assets of approximately $5.7 billion (after accumulated depreciation of approximately $1.5 billion) across 44 states. We adhere to rigorous underwriting and investing criteria centered on key industry, property and tenant level cash flow standards. We believe our focused approach provides a competitive advantage and the potential for stable and attractive returns. Further information is available at www.eprkc.com.

The financial results in this press release reflect preliminary, unaudited results, which are not final until the Company’s Quarterly Report on Form 10-Q is filed. 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 guidance, our capital resources and liquidity, our pursuit of growth opportunities, the timing of transaction closings and investment spending, our expected cash flows, the performance of our customers, our expected cash collections and our results of operations and financial condition. The forward-looking statements presented herein are based on the Company's current expectations. Forward-looking statements involve numerous risks and uncertainties, and you should not rely on them as predictions of actual events. There is no assurance that 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,” “pipeline,” “estimates,” “offers,” “plans,” “would” 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. 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. Except as required by law, 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.


Measure
Net income available to common shareholders per diluted common share	$	2.68	to	$	2.88
FFOAA per diluted common share	$	4.76	to	$	4.96
Investment spending	$	200.0	to	$	300.0
Disposition proceeds	$	50.0	to	$	75.0