Condensed Consolidating Financial Statements

A portion of the Company's subsidiaries have guaranteed the Company’s indebtedness under the Company's unsecured senior notes and combined unsecured revolving credit and term loan facility. The guarantees are joint and several, full and unconditional and subject to customary release provisions. The following summarizes the Company’s condensed consolidating information as of March 31, 2016 and December 31, 2015 and for the three months ended March 31, 2016 and 2015 (in thousands):

Condensed Consolidating Balance Sheet As of March 31, 2016

	EPR Properties (Issuer)		Wholly Owned Subsidiary Guarantors		Non- Guarantor Subsidiaries		Consolidated Elimination			Consolidated
Assets
Rental properties, net	$	—	$	2,515,063	$	699,284	$	—		$	3,214,347
Land held for development	—		1,258		21,272		—			22,530
Property under development	—		185,424		81,150		—			266,574
Mortgage notes and related accrued interest receivable	—		454,729		2,700		—			457,429
Investment in a direct financing lease, net	—		191,720		—		—			191,720
Investment in joint ventures	—		—		5,869		—			5,869
Cash and cash equivalents	7,519		753		2,708		—			10,980
Restricted cash	525		20,803		2,100		—			23,428
Accounts receivable, net	298		50,003		12,102		—			62,403
Intercompany notes receivable	—		175,757		—		(175,757		)	—
Investments in subsidiaries	3,946,482		—		—		(3,946,482		)	—
Other assets	23,002		11,337		53,921		—			88,260
Total assets	$	3,977,826	$	3,606,847	$	881,106	$	(4,122,239	)	$	4,343,540
Liabilities and Equity
Liabilities:
Accounts payable and accrued liabilities	$	39,918	$	33,742	$	3,863	$	—		$	77,523
Dividends payable	26,221		—		—		—			26,221
Unearned rents and interest	—		48,316		8,311		—			56,627
Intercompany notes payable	—		—		175,757		(175,757		)	—
Debt	1,724,649		—		271,482		—			1,996,131
Total liabilities	1,790,788		82,058		459,413		(175,757		)	2,156,502
Total equity	$	2,187,038	$	3,524,789	$	421,693	$	(3,946,482	)	$	2,187,038
Total liabilities and equity	$	3,977,826	$	3,606,847	$	881,106	$	(4,122,239	)	$	4,343,540

Condensed Consolidating Balance Sheet As of December 31, 2015

	EPR Properties (Issuer)		Wholly Owned Subsidiary Guarantors		Non- Guarantor Subsidiaries		Consolidated Elimination			Consolidated
Assets
Rental properties, net	$	—	$	2,485,411	$	539,788	$	—		$	3,025,199
Land held for development	—		1,258		22,352		—			23,610
Property under development	—		152,197		226,723		—			378,920
Mortgage notes and related accrued interest receivable, net	—		400,935		22,845		—			423,780
Investment in a direct financing lease, net	—		190,880		—		—			190,880
Investment in joint ventures	—		—		6,168		—			6,168
Cash and cash equivalents	1,089		735		2,459		—			4,283
Restricted cash	475		8,220		1,883		—			10,578
Accounts receivable, net	285		47,502		11,314		—			59,101
Intercompany notes receivable	—		175,757		—		(175,757		)	—
Investments in subsidiaries	3,825,897		—		—		(3,825,897		)	—
Other assets	23,053		10,607		61,091		—			94,751
Total assets	$	3,850,799	$	3,473,502	$	894,623	$	(4,001,654	)	$	4,217,270
Liabilities and Equity
Liabilities:
Accounts payable and accrued liabilities	$	49,671	$	38,759	$	3,748	$	—		$	92,178
Dividends payable	24,352		—		—		—			24,352
Unearned rents and interest	—		35,512		9,440		—			44,952
Intercompany notes payable	—		—		175,757		(175,757		)	—
Debt	1,702,908		—		279,012		—			1,981,920
Total liabilities	1,776,931		74,271		467,957		(175,757		)	2,143,402
Total equity	$	2,073,868	$	3,399,231	$	426,666	$	(3,825,897	)	$	2,073,868
Total liabilities and equity	$	3,850,799	$	3,473,502	$	894,623	$	(4,001,654	)	$	4,217,270

Condensed Consolidating Statement of Income Three Months Ended March 31, 2016

	EPR Properties (Issuer)			Wholly Owned Subsidiary Guarantors			Non- Guarantor Subsidiaries		Consolidated Elimination			Consolidated
Rental revenue	$	—		$	74,001		$	19,777	$	—		$	93,778
Tenant reimbursements	—			1,349			2,516		—			3,865
Other income	—			491			719		—			1,210
Mortgage and other financing income	212			16,019			3,684		—			19,915
Intercompany fee income	653			—			—		(653		)	—
Interest income on intercompany notes receivable	—			2,336			—		(2,336		)	—
Total revenue	865			94,196			26,696		(2,989		)	118,768
Equity in subsidiaries’ earnings	76,787			—			—		(76,787		)	—
Property operating expense	—			2,570			2,911		—			5,481
Intercompany fee expense	—			—			653		(653		)	—
Other expense	—			—			5		—			5
General and administrative expense	—			7,178			2,040		—			9,218
Costs associated with loan refinancing or payoff	—			—			552		—			552
Interest expense, net	22,190			(1,833		)	2,932		—			23,289
Interest expense on intercompany notes payable	—			—			2,336		(2,336		)	—
Transaction costs	443			—			1		—			444
Depreciation and amortization	443			21,391			4,121		—			25,955
Income before equity in income from joint ventures and other items	54,576			64,890			11,145		(76,787		)	53,824
Equity in income from joint ventures	—			—			212		—			212
Income before income taxes	54,576			64,890			11,357		(76,787		)	54,036
Income tax benefit (expense)	(396		)	—			540		—			144
Net income attributable to EPR Properties	54,180			64,890			11,897		(76,787		)	54,180
Preferred dividend requirements	(5,952		)	—			—		—			(5,952		)
Net income available to common shareholders of EPR Properties	$	48,228		$	64,890		$	11,897	$	(76,787	)	$	48,228
Comprehensive income attributable to EPR Properties	$	52,266		$	64,890		$	13,526	$	(78,416	)	$	52,266

Condensed Consolidating Statement of Income Three Months Ended March 31, 2015

	EPR Properties (Issuer)			Wholly Owned Subsidiary Guarantors			Non- Guarantor Subsidiaries			Consolidated Elimination			Consolidated
Rental revenue	$	—		$	57,810		$	18,930		$	—		$	76,740
Tenant reimbursements	—			1,410			2,893			—			4,303
Other income	—			2			548			—			550
Mortgage and other financing income	212			15,128			2,503			—			17,843
Intercompany fee income	689			—			—			(689		)	—
Interest income on intercompany notes receivable	111			2,391			—			(2,502		)	—
Total revenue	1,012			76,741			24,874			(3,191		)	99,436
Equity in subsidiaries’ earnings	78,995			—			—			(78,995		)	—
Property operating expense	—			3,153			3,204			—			6,357
Intercompany fee expense	—			—			689			(689		)	—
Other expense	—			—			102			—			102
General and administrative expense	—			5,781			1,901			—			7,682
Retirement severance expense	18,578			—			—			—			18,578
Interest expense, net	16,360			287			1,940			—			18,587
Interest expense on intercompany notes payable	—			—			2,502			(2,502		)	—
Transaction costs	1,354			—			252			—			1,606
Depreciation and amortization	390			14,940			4,025			—			19,355
Income before equity in income from joint ventures and other items	43,325			52,580			10,259			(78,995		)	27,169
Equity in income from joint ventures	—			—			164			—			164
Gain on sale of real estate	—			23,748			176			—			23,924
Income before income taxes	43,325			76,328			10,599			(78,995		)	51,257
Income tax expense	504			—			7,922			—			8,426
Income from continuing operations	42,821			76,328			2,677			(78,995		)	42,831
Discontinued operations:
Loss from discontinued operations	—			(10		)	—			—			(10		)
Net income attributable to EPR Properties	42,821			76,318			2,677			(78,995		)	42,821
Preferred dividend requirements	(5,952		)	—			—			—			(5,952		)
Net income available to common shareholders of EPR Properties	$	36,869		$	76,318		$	2,677		$	(78,995	)	$	36,869
Comprehensive income attributable to EPR Properties	$	38,966		$	76,271		$	(72	)	$	(76,199	)	$	38,966

Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2016

	EPR Properties (Issuer)			Wholly Owned Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidated
Intercompany fee income (expense)	$	653		$	—		$	(653	)	$	—
Interest income (expense) on intercompany receivable/payable	—			2,336			(2,336		)	—
Net cash provided (used) by other operating activities	(31,258		)	82,581			17,754			69,077
Net cash provided (used) by operating activities	(30,605		)	84,917			14,765			69,077
Investing activities:
Acquisition of rental properties and other assets	(66		)	(36,771		)	(70		)	(36,907		)
Proceeds from sale of real estate	—			—			1,920			1,920
Investment in mortgage notes receivable	—			(53,659		)	—			(53,659		)
Proceeds from mortgage note receivable paydown	—			176			19,320			19,496
Additions to property under development	—			(53,161		)	(8,604		)	(61,765		)
Advances to subsidiaries, net	(39,404		)	58,516			(19,112		)	—
Net cash used by investing activities	(39,470		)	(84,899		)	(6,546		)	(130,915		)
Financing activities:
Proceeds from long-term debt facilities	162,000			—			—			162,000
Principal payments on long-term debt	(141,000		)	—			(7,586		)	(148,586		)
Deferred financing fees paid	(28		)	—			(8		)	(36		)
Costs associated with loan refinancing or payoff (cash portion)	—			—			(472		)	(472		)
Net proceeds from issuance of common shares	125,199			—			—			125,199
Impact of stock option exercises, net	(635		)	—			—			(635		)
Purchase of common shares for treasury for vesting	(4,208		)	—			—			(4,208		)
Dividends paid to shareholders	(64,823		)	—			—			(64,823		)
Net cash provided (used) by financing activities	76,505			—			(8,066		)	68,439
Effect of exchange rate changes on cash	—			—			96			96
Net increase in cash and cash equivalents	6,430			18			249			6,697
Cash and cash equivalents at beginning of the period	1,089			735			2,459			4,283
Cash and cash equivalents at end of the period	$	7,519		$	753		$	2,708		$	10,980

Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2015

	EPR Properties (Issuer)			Wholly Owned Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidated
Intercompany fee income (expense)	$	689		$	—		$	(689	)	$	—
Interest income (expense) on intercompany receivable/payable	111			2,391			(2,502		)	—
Net cash provided (used) by other operating activities	(33,933		)	74,509			16,487			57,063
Net cash provided (used) by operating activities of continuing operations	(33,133		)	76,900			13,296			57,063
Net cash provided by operating activities of discontinued operations	—			455			—			455
Net cash provided (used) by operating activities	(33,133		)	77,355			13,296			57,518
Investing activities:
Acquisition of rental properties and other assets	(86		)	(49,116		)	(5		)	(49,207		)
Proceeds from sale of real estate	—			42,709			1,081			43,790
Investment in mortgage note receivable	—			(3,121		)	(15,577		)	(18,698		)
Proceeds from mortgage note receivable paydown	—			148			—			148
Additions to property under development	—			(64,729		)	(4,466		)	(69,195		)
Advances to subsidiaries, net	(100,872		)	90,515			10,357			—
Net cash provided (used) by investing activities	(100,958		)	16,406			(8,610		)	(93,162		)
Financing activities:
Proceeds from long-term debt facilities	298,914			155,000			—			453,914
Principal payments on long-term debt	—			(248,181		)	(2,919		)	(251,100		)
Deferred financing fees paid	(2,884		)	6			—			(2,878		)
Net proceeds from issuance of common shares	123			—			—			123
Impact of stock option exercises, net	(33		)	—			—			(33		)
Purchase of common shares for treasury for vesting	(8,222		)	—			—			(8,222		)
Dividends paid to shareholders	(56,796		)	—			—			(56,796		)
Net cash provided (used) by financing activities	231,102			(93,175		)	(2,919		)	135,008
Effect of exchange rate changes on cash	—			(15		)	(479		)	(494		)
Net increase in cash and cash equivalents	97,011			571			1,288			98,870
Cash and cash equivalents at beginning of the period	(1,234		)	840			3,730			3,336
Cash and cash equivalents at end of the period	$	95,777		$	1,411		$	5,018		$	102,206