Condensed Consolidating Financial Statements

A portion of the Company's subsidiaries have guaranteed the Company’s indebtedness under the Company's unsecured credit facilities and existing senior unsecured notes. 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 September 30, 2017 and December 31, 2016 and for the three and nine months ended September 30, 2017 and 2016 (in thousands):

Condensed Consolidating Balance Sheet As of September 30, 2017

	EPR Properties (Issuer)		Wholly Owned Subsidiary Guarantors		Non- Guarantor Subsidiaries		Consolidated Elimination			Consolidated
Assets
Rental properties, net	$	—	$	3,640,225	$	895,769	$	—		$	4,535,994
Land held for development	—		12,402		21,272		—			33,674
Property under development	—		236,916		47,295		—			284,211
Mortgage notes and related accrued interest receivable	—		963,738		8,633		—			972,371
Investment in a direct financing lease, net	—		57,698		—		—			57,698
Investment in joint ventures	—		—		5,616		—			5,616
Cash and cash equivalents	8,788		1,472		1,152		—			11,412
Restricted cash	395		23,599		329		—			24,323
Accounts receivable, net	675		89,230		9,308		—			99,213
Intercompany notes receivable	—		179,589		—		(179,589		)	—
Investments in subsidiaries	5,892,529		—		—		(5,892,529		)	—
Other assets	26,485		32,417		49,596		—			108,498
Total assets	$	5,928,872	$	5,237,286	$	1,038,970	$	(6,072,118	)	$	6,133,010
Liabilities and Equity
Liabilities:
Accounts payable and accrued liabilities	$	58,308	$	65,910	$	16,364	$	—		$	140,582
Dividends payable	30,997		—		—		—			30,997
Unearned rents and interest	—		69,615		15,583		—			85,198
Intercompany notes payable	—		—		179,589		(179,589		)	—
Debt	2,951,259		—		36,666		—			2,987,925
Total liabilities	3,040,564		135,525		248,202		(179,589		)	3,244,702
Total equity	2,888,308		5,101,761		790,768		(5,892,529		)	2,888,308
Total liabilities and equity	$	5,928,872	$	5,237,286	$	1,038,970	$	(6,072,118	)	$	6,133,010

Condensed Consolidating Balance Sheet As of December 31, 2016

	EPR Properties (Issuer)		Wholly Owned Subsidiary Guarantors		Non- Guarantor Subsidiaries		Consolidated Elimination			Consolidated
Assets
Rental properties, net	$	—	$	3,164,622	$	431,140	$	—		$	3,595,762
Land held for development	—		1,258		21,272		—			22,530
Property under development	1,010		247,239		48,861		—			297,110
Mortgage notes and related accrued interest receivable	—		612,141		1,837		—			613,978
Investment in a direct financing lease, net	—		102,698		—		—			102,698
Investment in joint ventures	—		—		5,972		—			5,972
Cash and cash equivalents	16,586		1,157		1,592		—			19,335
Restricted cash	365		8,352		1,027		—			9,744
Accounts receivable, net	556		89,145		9,238		—			98,939
Intercompany notes receivable	—		179,589		—		(179,589		)	—
Investments in subsidiaries	4,521,095		—		—		(4,521,095		)	—
Other assets	21,768		23,068		54,118		—			98,954
Total assets	$	4,561,380	$	4,429,269	$	575,057	$	(4,700,684	)	$	4,865,022
Liabilities and Equity
Liabilities:
Accounts payable and accrued liabilities	$	63,431	$	52,061	$	4,266	$	—		$	119,758
Dividends payable	26,318		—		—		—			26,318
Unearned rents and interest	—		46,647		773		—			47,420
Intercompany notes payable	—		—		179,589		(179,589		)	—
Debt	2,285,730		—		199,895		—			2,485,625
Total liabilities	2,375,479		98,708		384,523		(179,589		)	2,679,121
Total equity	2,185,901		4,330,561		190,534		(4,521,095		)	2,185,901
Total liabilities and equity	$	4,561,380	$	4,429,269	$	575,057	$	(4,700,684	)	$	4,865,022

Condensed Consolidating Statement of Income Three Months Ended September 30, 2017

	EPR Properties (Issuer)			Wholly Owned Subsidiary Guarantors			Non- Guarantor Subsidiaries			Consolidated Elimination			Consolidated
Rental revenue	$	—		$	97,398		$	25,429		$	—		$	122,827
Tenant reimbursements	—			1,274			2,460			—			3,734
Other income	—			1			521			—			522
Mortgage and other financing income	232			23,960			122			—			24,314
Intercompany fee income	732			—			—			(732		)	—
Interest income on intercompany notes receivable	—			2,580			—			(2,580		)	—
Total revenue	964			125,213			28,532			(3,312		)	151,397
Equity in subsidiaries’ earnings	100,527			—			—			(100,527		)	—
Property operating expense	—			3,434			2,906			—			6,340
Intercompany fee expense	—			—			732			(732		)	—
General and administrative expense	—			9,830			2,240			—			12,070
Costs associated with loan refinancing or payoff	1,474			—			3			—			1,477
Interest expense, net	36,364			(2,368		)	198			—			34,194
Interest expense on intercompany notes payable	—			—			2,580			(2,580		)	—
Transaction costs	113			—			—			—			113
Depreciation and amortization	232			26,633			7,829			—			34,694
Income before equity in income from joint ventures and other items	63,308			87,684			12,044			(100,527		)	62,509
Equity in income from joint ventures	—			—			35			—			35
Gain on sale of real estate	—			997			—			—			997
Income before income taxes	63,308			88,681			12,079			(100,527		)	63,541
Income tax expense	(354		)	—			(233		)	—			(587		)
Net income	62,954			88,681			11,846			(100,527		)	62,954
Preferred dividend requirements	(5,951		)	—			—			—			(5,951		)
Net income available to common shareholders of EPR Properties	$	57,003		$	88,681		$	11,846		$	(100,527	)	$	57,003
Comprehensive income	$	64,175		$	88,681		$	12,694		$	(101,375	)	$	64,175

Condensed Consolidating Statement of Income Three Months Ended September 30, 2016

	EPR Properties (Issuer)			Wholly Owned Subsidiary Guarantors			Non- Guarantor Subsidiaries		Consolidated Elimination			Consolidated
Rental revenue	$	—		$	89,178		$	13,104	$	—		$	102,282
Tenant reimbursements	—			1,338			2,483		—			3,821
Other income	—			1,829			647		—			2,476
Mortgage and other financing income	286			16,692			53		—			17,031
Intercompany fee income	677			—			—		(677		)	—
Interest income on intercompany notes receivable	—			2,460			—		(2,460		)	—
Total revenue	963			111,497			16,287		(3,137		)	125,610
Equity in subsidiaries’ earnings	84,755			—			—		(84,755		)	—
Property operating expense	—			2,916			2,710		—			5,626
Intercompany fee expense	—			—			677		(677		)	—
General and administrative expense	—			7,927			1,164		—			9,091
Costs associated with loan refinancing or payoff	—			14			—		—			14
Interest expense, net	24,414			(2,395		)	2,246		—			24,265
Interest expense on intercompany notes payable	—			—			2,460		(2,460		)	—
Transaction costs	2,947			—			—		—			2,947
Depreciation and amortization	449			23,768			3,384		—			27,601
Income before equity in income from joint ventures and other items	57,908			79,267			3,646		(84,755		)	56,066
Equity in income from joint ventures	—			—			203		—			203
Gain on sale of real estate	—			1,615			—		—			1,615
Income before income taxes	57,908			80,882			3,849		(84,755		)	57,884
Income tax (expense) benefit	(382		)	—			24		—			(358		)
Income from continuing operations	57,526			80,882			3,873		(84,755		)	57,526
Net income	57,526			80,882			3,873		(84,755		)	57,526
Preferred dividend requirements	(5,951		)	—			—		—			(5,951		)
Net income available to common shareholders of EPR Properties	$	51,575		$	80,882		$	3,873	$	(84,755	)	$	51,575
Comprehensive income	$	58,739		$	80,882		$	2,440	$	(83,322	)	$	58,739

Condensed Consolidating Statement of Income

Nine Months Ended September 30, 2017



	EPR Properties (Issuer)			Wholly Owned Subsidiary Guarantors			Non- Guarantor Subsidiaries			Consolidated Elimination			Consolidated
Rental revenue	$	—		$	285,977		$	63,356		$	—		$	349,333
Tenant reimbursements	—			3,955			7,469			—			11,424
Other income	—			614			1,904			—			2,518
Mortgage and other financing income	696			64,103			217			—			65,016
Intercompany fee income	2,094			—			—			(2,094		)	—
Interest income on intercompany notes receivable	—			7,435			—			(7,435		)	—
Total revenue	2,790			362,084			72,946			(9,529		)	428,291
Equity in subsidiaries’ earnings	300,631			—			—			(300,631		)	—
Property operating expense	—			9,756			9,006			—			18,762
Intercompany fee expense	—			—			2,094			(2,094		)	—
General and administrative expense	—			28,112			5,675			—			33,787
Costs associated with loan refinancing or payoff	1,474			—			17			—			1,491
Gain on early extinguishment of debt	—			—			(977		)	—			(977		)
Interest expense, net	102,424			(7,482		)	2,911			—			97,853
Interest expense on intercompany notes payable	—			—			7,435			(7,435		)	—
Transaction costs	388			—			—			—			388
Impairment charges	—			10,195			—			—			10,195
Depreciation and amortization	662			76,594			18,663			—			95,919
Income before equity in income from joint ventures and other items	198,473			244,909			28,122			(300,631		)	170,873
Equity in income from joint ventures	—			—			86			—			86
Gain on sale of real estate	—			27,344			1,118			—			28,462
Income before income taxes	198,473			272,253			29,326			(300,631		)	199,421
Income tax expense	(1,068		)	—			(948		)	—			(2,016		)
Net income	197,405			272,253			28,378			(300,631		)	197,405
Preferred dividend requirements	(17,855		)	—			—			—			(17,855		)
Net income available to common shareholders of EPR Properties	$	179,550		$	272,253		$	28,378		$	(300,631	)	$	179,550
Comprehensive income	$	200,590		$	272,253		$	28,998		$	(301,251	)	$	200,590

Condensed Consolidating Statement of Income

Nine Months Ended September 30, 2016



	EPR Properties (Issuer)			Wholly Owned Subsidiary Guarantors			Non- Guarantor Subsidiaries		Consolidated Elimination			Consolidated
Rental revenue	$	—		$	251,900		$	40,215	$	—		$	292,115
Tenant reimbursements	—			4,059			7,518		—			11,577
Other income	—			3,648			2,164		—			5,812
Mortgage and other financing income	710			48,370			3,827		—			52,907
Intercompany fee income	2,018			—			—		(2,018		)	—
Interest income on intercompany notes receivable	—			7,297			—		(7,297		)	—
Total revenue	2,728			315,274			53,724		(9,315		)	362,411
Equity in subsidiaries’ earnings	240,420			—			—		(240,420		)	—
Property operating expense	—			8,135			8,552		—			16,687
Intercompany fee expense	—			—			2,018		(2,018		)	—
Other expense	—			—			5		—			5
General and administrative expense	—			23,318			3,991		—			27,309
Costs associated with loan refinancing or payoff	—			353			552		—			905
Interest expense, net	69,042			(5,596		)	6,864		—			70,310
Interest expense on intercompany notes payable	—			—			7,297		(7,297		)	—
Transaction costs	4,778			—			103		—			4,881
Depreciation and amortization	1,338			67,516			10,368		—			79,222
Income before equity in income from joint ventures and other items	167,990			221,548			13,974		(240,420		)	163,092
Equity in income from joint ventures	—			—			501		—			501
Gain on sale of real estate	—			3,885			—		—			3,885
Income before income taxes	167,990			225,433			14,475		(240,420		)	167,478
Income tax (expense) benefit	(1,149		)	—			512		—			(637		)
Net income	166,841			225,433			14,987		(240,420		)	166,841
Preferred dividend requirements	(17,855		)	—			—		—			(17,855		)
Net income available to common shareholders of EPR Properties	$	148,986		$	225,433		$	14,987	$	(240,420	)	$	148,986
Comprehensive income	$	165,917		$	225,433		$	15,391	$	(240,824	)	$	165,917

Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2017

	EPR Properties (Issuer)			Wholly Owned Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidated
Intercompany fee income (expense)	$	2,094		$	—		$	(2,094	)	$	—
Interest income (expense) on intercompany receivable/payable	—			7,435			(7,435		)	—
Net cash (used) provided by other operating activities	(95,174		)	332,846			62,636			300,308
Net cash (used) provided by operating activities	(93,080		)	340,281			53,107			300,308
Investing activities:
Acquisition of rental properties and other assets	(1,012		)	(297,658		)	(55,607		)	(354,277		)
Proceeds from sale of real estate	203			107,022			29,242			136,467
Investment in mortgage notes receivable	—			(123,060		)	(7,016		)	(130,076		)
Proceeds from mortgage note receivable paydown	—			16,608			—			16,608
Investment in promissory notes receivable	—			(1,868		)	—			(1,868		)
Proceeds from promissory notes receivable paydown	—			1,599			—			1,599
Proceeds from insurance recovery	—			579			—			579
Additions to property under development	(725		)	(289,810		)	(13,549		)	(304,084		)
Advances to subsidiaries, net	(402,145		)	246,622			155,523			—
Net cash (used) provided by investing activities	(403,679		)	(339,966		)	108,593			(635,052		)
Financing activities:
Proceeds from debt facilities and senior unsecured notes	1,175,000			—			—			1,175,000
Principal payments on debt	(505,000		)	—			(162,091		)	(667,091		)
Deferred financing fees paid	(14,001		)	—			(206		)	(14,207		)
Costs associated with loan refinancing or payoff (cash portion)	—			—			(7		)	(7		)
Net proceeds from issuance of common shares	68,552			—			—			68,552
Purchase of common shares for treasury for vesting	(6,729		)	—			—			(6,729		)
Dividends paid to shareholders	(228,861		)	—			—			(228,861		)
Net cash provided (used) by financing activities	488,961			—			(162,304		)	326,657
Effect of exchange rate changes on cash	—			—			164			164
Net (decrease) increase in cash and cash equivalents	(7,798		)	315			(440		)	(7,923		)
Cash and cash equivalents at beginning of the period	16,586			1,157			1,592			19,335
Cash and cash equivalents at end of the period	$	8,788		$	1,472		$	1,152		$	11,412

Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2016

	EPR Properties (Issuer)			Wholly Owned Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidated
Intercompany fee income (expense)	$	2,018		$	—		$	(2,018	)	$	—
Interest income (expense) on intercompany receivable/payable	—			7,297			(7,297		)	—
Net cash (used) provided by other operating activities	(74,550		)	254,721			35,602			215,773
Net cash (used) provided by operating activities	(72,532		)	262,018			26,287			215,773
Investing activities:
Acquisition of rental properties and other assets	(180		)	(175,075		)	(2,107		)	(177,362		)
Proceeds from sale of real estate	—			19,175			1,476			20,651
Investment in mortgage note receivable	—			(80,786		)	—			(80,786		)
Proceeds from mortgage note receivable paydown	—			44,556			19,320			63,876
Investment in promissory notes receivable	—			(66		)	—			(66		)
Proceeds from sale of infrastructure related to issuance of revenue bonds	—			43,462			—			43,462
Proceeds from insurance recovery	—			2,635			401			3,036
Proceeds from sale of investments in a direct financing lease, net	—			825			—			825
Additions to property under development	(181		)	(282,554		)	(6,152		)	(288,887		)
Investment in (repayment of) intercompany notes payable	—			(2,063		)	2,063			—
Advances to subsidiaries, net	(203,471		)	231,048			(27,577		)	—
Net cash used by investing activities	(203,832		)	(198,843		)	(12,576		)	(415,251		)
Financing activities:
Proceeds from debt facilities	840,000			—			14,360			854,360
Principal payments on debt	(496,000		)	(63,727		)	(27,382		)	(587,109		)
Deferred financing fees paid	(3,020		)	—			(27		)	(3,047		)
Costs associated with loan refinancing or payoff (cash portion)	—			—			(482		)	(482		)
Net proceeds from issuance of common shares	142,452			—			—			142,452
Impact of stock option exercises, net	(717		)	—			—			(717		)
Purchase of common shares for treasury for vesting	(4,211		)	—			—			(4,211		)
Dividends paid to shareholders	(198,678		)	—			—			(198,678		)
Net cash provided (used) by financing activities	279,826			(63,727		)	(13,531		)	202,568
Effect of exchange rate changes on cash	—			—			(62		)	(62		)
Net increase (decrease) in cash and cash equivalents	3,462			(552		)	118			3,028
Cash and cash equivalents at beginning of the period	1,089			1,289			1,905			4,283
Cash and cash equivalents at end of the period	$	4,551		$	737		$	2,023		$	7,311