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EPR Properties Reports Third Quarter 2019 Results

October 29, 2019

KANSAS CITY, Mo.--(BUSINESS WIRE)--Oct 29, 2019--

EPR Properties (NYSE:EPR) today announced operating results for the third quarter and nine months ended September 30, 2019 (dollars in thousands, except per share data):

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2019

 

2018

 

2019

 

2018

Total revenue (1)

$

184,862

 

 

$

176,409

 

 

$

525,102

 

 

$

534,244

 

Net income available to common shareholders

27,969

 

 

85,797

 

 

147,844

 

 

194,844

 

Net income available to common shareholders per diluted common share

0.36

 

 

1.15

 

 

1.94

 

 

2.62

 

Funds From Operations as adjusted (FFOAA) (a non-GAAP financial measure)

115,309

 

 

119,567

 

 

323,519

 

 

355,353

 

FFOAA per diluted common share (a non-GAAP financial measure)

1.46

 

 

1.58

 

 

4.19

 

 

4.70

 

(1) Total revenue for the three and nine months ended September 30, 2018 included $20.0 million and $67.3 million, respectively, in prepayment fees related primarily to the pay-off of a mortgage note that was secured by ski properties.

Third Quarter Company Headlines

CEO Comments

“Our third quarter results built on the strong earnings and investment momentum we have established to date,” commented Greg Silvers, President and CEO. “Our expertise in experiential real estate aligns well with an ever growing demand for these assets as consumers continue to demonstrate their desire to spend on experiences. Our confidence in the Company’s outlook is further supported by our recent bond issuance, which was at a record low rate for the Company. With ongoing solid performance in our tenant categories, enhanced investment capacity, a favorable cost of capital, and an attractive growth pipeline, we are increasing both our FFOAA per share and investment spending guidance for the year.”

Portfolio Update

The Company’s investment portfolio (excluding property under development) consisted of the following at September 30, 2019:

The Company’s combined owned portfolio consisted of 23.1 million square feet and was 99% leased. As of September 30, 2019, the Company also had a total of $31.8 million invested in property under development.

Investment Update

The Company’s investment spending for the three months ended September 30, 2019 totaled $118.1 million (bringing the year-to-date investment spending to $684.7 million), and included investments in each of its operating segments:

Capital Recycling

During the third quarter of 2019, pursuant to tenant purchase options, the Company completed the sale of three public charter schools for net proceeds totaling $59.4 million. In addition, the Company completed the sale of one other public charter school, one early education center and one land parcel for net proceeds totaling $27.4 million. The Company recognized a combined gain on these sales of $14.3 million.

As previously announced, on July 1, 2019, the Company received $189.8 million in proceeds representing payment in full on its mortgage notes receivable associated with the Schlitterbahn waterparks. Additionally, during the quarter, the Company received $17.8 million in proceeds representing payment in full on a mortgage note receivable that was secured by one public charter school property. In connection with this prepayment, the Company recognized a prepayment fee of $1.8 million that is included in mortgage and other financing income.

Disposition proceeds and mortgage note pay-offs (excluding principal amortization and including prepayment fees) totaled $390.2 million for the nine months ended September 30, 2019.

Balance Sheet Update

The Company had a net debt to adjusted EBITDA ratio (a non-GAAP financial measure) of 5.2x at September 30, 2019. The Company had $115.8 million of unrestricted cash on hand and no outstanding balance under its $1.0 billion unsecured revolving credit facility at September 30, 2019.

During the quarter, the Company issued 686 thousand common shares under its Dividend Reinvestment and Direct Share Purchase Plan (DSPP) for net proceeds of $52.3 million and subsequent to quarter end, in October, issued another 219 thousand common shares for net proceeds of $16.7 million. The year to date issuances under this plan through October total 4.0 million common shares for net proceeds of $305.6 million.

On August 15, 2019, the Company issued $500.0 million in senior unsecured notes due August 15, 2029. The notes bear interest at an annual rate of 3.75%. The Company used the net proceeds from the note offering to complete the tender offer and subsequent redemption of all of its remaining $350.0 million aggregate principal amount of 5.75% senior notes due August 15, 2022 not repurchased as part of the tender offer.

Additionally, the Company prepaid in full a mortgage note payable totaling $18.6 million with a variable interest rate, which was secured by one theatre property.

Dividend Information

The Company declared regular monthly cash dividends during the third quarter of 2019 totaling $1.125 per common share. This dividend represents an annualized dividend of $4.50 per common share, an increase of 4.2% over the prior year, and is the Company’s ninth consecutive year with a significant annual dividend increase.

The Company also declared third quarter cash dividends of $0.359375 per share on its 5.75% Series C cumulative convertible preferred shares, $0.5625 per share on its 9.00% Series E cumulative convertible preferred shares and $0.359375 per share on its 5.75% Series G cumulative redeemable preferred shares.

2019 Guidance

(Dollars in millions, except per share data):

 

Measure

 

Current

 

Prior

Net income available to common shareholders per diluted common share

 

$

2.58

 

to

$

2.66

 

 

$

2.99

 

to

$

3.15

 

FFOAA per diluted common share

 

$

5.44

 

to

$

5.52

 

 

$

5.32

 

to

$

5.48

 

Investment spending

 

$

775.0

 

to

$

825.0

 

 

$

700.0

 

to

$

850.0

 

Disposition proceeds

 

$

400.0

 

to

$

475.0

 

 

$

300.0

 

to

$

400.0

 

Current guidance for 2019 FFOAA per diluted common share is based on a FFO per diluted common share range of $4.41 to $4.49 adjusted for estimated costs associated with loan refinancing or payoff, transaction costs, severance expense, termination fees related to education properties, deferred income tax benefit and the impact of Series C and Series E dilution. FFO per diluted common share for 2019 is based on a net income available to common shareholders per diluted common share range of $2.58 to $2.66 less estimated gain on sale of real estate of $0.40 and the impact of Series C and Series E dilution of $0.02, plus estimated real estate depreciation of $2.22 and allocated share of joint venture depreciation of $0.03 (in accordance with the NAREIT definition of FFO).

Additional earnings guidance detail can be found in the Company’s supplemental information package available in the Investor Center on the Company’s website located at http://investors.eprkc.com/earnings-supplementals.

Conference Call Information

Management will host a conference call to discuss the Company’s financial results on October 30, 2019 at 8:30 a.m. Eastern Daylight Time. The conference will be webcast and can be accessed via the Earnings Call page in the Investor Center on the Company’s website located at http://investors.eprkc.com/earnings-call. To access the call, audio only, dial (866) 587-2930 and when prompted, provide the passcode 8887479.

You may watch a replay of the webcast by visiting the Earnings Call page at http://investors.eprkc.com/earnings-call.

Quarterly Supplemental

The Company’s supplemental information package for the third quarter and nine months ended September 30, 2019 is available in the Investor Center on the Company’s website located at http://investors.eprkc.com/earnings-supplementals.

EPR Properties

Consolidated Statements of Income

(Unaudited, dollars in thousands except per share data)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2019

 

2018

 

2019

 

2018

Rental revenue

$

161,262

 

 

$

140,905

 

 

$

469,315

 

 

$

410,848

 

Other income

11,464

 

 

365

 

 

17,534

 

 

1,641

 

Mortgage and other financing income

12,136

 

 

35,139

 

 

38,253

 

 

121,755

 

Total revenue

184,862

 

 

176,409

 

 

525,102

 

 

534,244

 

Property operating expense

14,663

 

 

6,968

 

 

45,227

 

 

21,866

 

Other expense

11,403

 

 

118

 

 

19,494

 

 

118

 

General and administrative expense

11,600

 

 

11,424

 

 

35,540

 

 

36,724

 

Severance expense

1,521

 

 

 

 

1,941

 

 

 

Litigation settlement expense

 

 

 

 

 

 

2,090

 

Costs associated with loan refinancing or payoff

38,407

 

 

 

 

38,407

 

 

31,958

 

Interest expense, net

36,640

 

 

33,576

 

 

106,744

 

 

101,992

 

Transaction costs

5,959

 

 

1,101

 

 

18,005

 

 

2,115

 

Impairment charges

 

 

 

 

 

 

16,548

 

Depreciation and amortization

45,134

 

 

38,623

 

 

127,232

 

 

113,889

 

Income before equity in income (loss) from joint ventures and other items

19,535

 

 

84,599

 

 

132,512

 

 

206,944

 

Equity in (loss) income from joint ventures

(435

)

 

20

 

 

524

 

 

(17

)

Gain on sale of real estate

14,303

 

 

2,215

 

 

30,405

 

 

2,688

 

Gain on sale of investment in direct financing leases

 

 

5,514

 

 

 

 

5,514

 

Income before income taxes

33,403

 

 

92,348

 

 

163,441

 

 

215,129

 

Income tax benefit (expense)

600

 

 

(515

)

 

2,505

 

 

(2,177

)

Net income

34,003

 

 

91,833

 

 

165,946

 

 

212,952

 

Preferred dividend requirements

(6,034

)

 

(6,036

)

 

(18,102

)

 

(18,108

)

Net income available to common shareholders of EPR Properties

$

27,969

 

 

$

85,797

 

 

$

147,844

 

 

$

194,844

 

Net income available to common shareholders of EPR Properties per share:

 

 

 

 

 

 

 

Basic

$

0.36

 

 

$

1.15

 

 

$

1.94

 

 

$

2.62

 

Diluted

$

0.36

 

 

$

1.15

 

 

$

1.94

 

 

$

2.62

 

Shares used for computation (in thousands):

 

 

 

 

 

 

 

Basic

77,632

 

 

74,345

 

 

76,169

 

 

74,274

 

Diluted

77,664

 

 

74,404

 

 

76,207

 

 

74,316

 

EPR Properties

Condensed Consolidated Balance Sheets

(Unaudited, dollars in thousands)

 

September 30, 2019

 

December 31, 2018

Assets

 

 

 

Real estate investments, net of accumulated depreciation of $989,480 and $883,174 at September 30, 2019 and December 31, 2018, respectively

$

5,569,310

 

 

$

5,024,057

 

Land held for development

28,080

 

 

34,177

 

Property under development

31,825

 

 

287,546

 

Operating lease right-of-use assets

219,459

 

 

 

Mortgage notes and related accrued interest receivable

413,695

 

 

517,467

 

Investment in direct financing leases, net

20,727

 

 

20,558

 

Investment in joint ventures

35,222

 

 

34,486

 

Cash and cash equivalents

115,839

 

 

5,872

 

Restricted cash

5,929

 

 

12,635

 

Accounts receivable

99,190

 

 

98,369

 

Other assets

94,014

 

 

96,223

 

Total assets

$

6,633,290

 

 

$

6,131,390

 

Liabilities and Equity

 

 

 

Accounts payable and accrued liabilities

$

121,351

 

 

$

168,463

 

Operating lease liabilities

244,358

 

 

 

Dividends payable

35,374

 

 

32,799

 

Unearned rents and interest

89,797

 

 

79,051

 

Debt

3,101,611

 

 

2,986,054

 

Total liabilities

3,592,491

 

 

3,266,367

 

Total equity

$

3,040,799

 

 

$

2,865,023

 

Total liabilities and equity

$

6,633,290

 

 

$

6,131,390

 

Non-GAAP Financial Measures

Funds From Operations (FFO) and Funds From Operations As Adjusted (FFOAA)

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. 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.

FFO and FFOAA are widely used measures of the operating performance of real estate companies and are provided here as a supplemental measure to GAAP net income available to common shareholders and earnings per share, and management provides FFO and FFOAA herein because it believes this information is useful to investors in this regard. FFO and FFOAA are non-GAAP financial measures. FFO and FFOAA 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 and FFOAA the same way so comparisons with other REITs may not be meaningful. The following table summarizes FFO and FFOAA for the three and nine months ended September 30, 2019 and 2018 and reconciles such measures to net income available to common shareholders, the most directly comparable GAAP measure:

EPR Properties

Reconciliation of Non-GAAP Financial Measures

(Unaudited, dollars in thousands except per share data)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2019

 

2018

 

2019

 

2018

FFO:

 

 

 

 

 

 

 

Net income available to common shareholders of EPR Properties

$

27,969

 

 

$

85,797

 

 

$

147,844

 

 

$

194,844

 

Gain on sale of real estate

(14,303

)

 

(2,215

)

 

(30,405

)

 

(2,688

)

Gain on sale of investment in direct financing leases

 

 

(5,514

)

 

 

 

(5,514

)

Impairment of real estate investments

 

 

 

 

 

 

16,548

 

Real estate depreciation and amortization

44,863

 

 

38,388

 

 

126,475

 

 

113,211

 

Allocated share of joint venture depreciation

553

 

 

54

 

 

1,662

 

 

170

 

FFO available to common shareholders of EPR Properties

$

59,082

 

 

$

116,510

 

 

$

245,576

 

 

$

316,571

 

 

 

 

 

 

 

 

 

 

FFO available to common shareholders of EPR Properties

$

59,082

 

 

$

116,510

 

 

$

245,576

 

 

$

316,571

 

Add: Preferred dividends for Series C preferred shares

 

 

1,940

 

 

5,817

 

 

5,820

 

Add: Preferred dividends for Series E preferred shares

 

 

1,939

 

 

5,817

 

 

5,817

 

Diluted FFO available to common shareholders of EPR Properties

$

59,082

 

 

$

120,389

 

 

$

257,210

 

 

$

328,208

 

 

 

 

 

 

 

 

 

FFOAA:

 

 

 

 

 

 

 

FFO available to common shareholders of EPR Properties

$

59,082

 

 

$

116,510

 

 

$

245,576

 

 

$

316,571

 

Costs associated with loan refinancing or payoff

38,407

 

 

 

 

38,407

 

 

31,958

 

Transaction costs

5,959

 

 

1,101

 

 

18,005

 

 

2,115

 

Severance expense

1,521

 

 

 

 

1,941

 

 

 

Litigation settlement expense

 

 

 

 

 

 

2,090

 

Termination fee included in gain on sale

11,324

 

 

1,864

 

 

22,858

 

 

1,864

 

Deferred income tax (benefit) expense

(984

)

 

92

 

 

(3,268

)

 

755

 

FFOAA available to common shareholders of EPR Properties

$

115,309

 

 

$

119,567

 

 

$

323,519

 

 

$

355,353

 

 

 

 

 

 

 

 

 

FFOAA available to common shareholders of EPR Properties

$

115,309

 

 

$

119,567

 

 

$

323,519

 

 

$

355,353

 

Add: Preferred dividends for Series C preferred shares

1,939

 

 

1,940

 

 

5,817

 

 

5,820

 

Add: Preferred dividends for Series E preferred shares

1,939

 

 

1,939

 

 

5,817

 

 

5,817

 

Diluted FFOAA available to common shareholders of EPR Properties

$

119,187

 

 

$

123,446

 

 

$

335,153

 

 

$

366,990

 

 

 

 

 

 

 

 

 

FFO per common share:

 

 

 

 

 

 

 

Basic

$

0.76

 

 

$

1.57

 

 

$

3.22

 

 

$

4.26

 

Diluted

0.76

 

 

1.54

 

 

3.21

 

 

4.21

 

FFOAA per common share:

 

 

 

 

 

 

 

Basic

$

1.49

 

 

$

1.61

 

 

$

4.25

 

 

$

4.78

 

Diluted

1.46

 

 

1.58

 

 

4.19

 

 

4.70

 

Shares used for computation (in thousands):

 

 

 

 

 

 

 

Basic

77,632

 

 

74,345

 

 

76,169

 

 

74,274

 

Diluted

77,664

 

 

74,404

 

 

76,207

 

 

74,316

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding-diluted EPS

77,664

 

 

74,404

 

 

76,207

 

 

74,316

 

Effect of dilutive Series C preferred shares

2,170

 

 

2,122

 

 

2,158

 

 

2,110

 

Adjusted weighted average shares outstanding-diluted Series C

79,834

 

 

76,526

 

 

78,365

 

 

76,426

 

Effect of dilutive Series E preferred shares

1,634

 

 

1,610

 

 

1,628

 

 

1,604

 

Adjusted weighted average shares outstanding-diluted Series C and Series E

81,468

 

 

78,136

 

 

79,993

 

 

78,030

 

 

 

 

 

 

 

 

 

Other financial information:

 

 

 

 

 

 

 

Straight-lined rental revenue

$

4,399

 

 

$

3,079

 

 

$

10,036

 

 

$

7,013

 

Dividends per common share

$

1.125

 

 

$

1.080

 

 

$

3.375

 

 

$

3.240

 

 

 

The conversion of the 5.75% Series C cumulative convertible preferred shares and the 9.00% Series E cumulative convertible preferred shares does not result in more dilution to per share results and therefore is not included in the calculation of diluted FFO per share data for the three months ended September 30, 2019. 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 per share for the nine months ended September 30, 2019 and the three and nine months ended September 30, 2018. 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 per share for these periods.

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 FFOAA per share for the three and nine months ended September 30, 2019 and 2018. 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 FFOAA per share for these periods.

Net Debt

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.

EBITDAre

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 disposition of real estate, impairment losses on real estate, costs (gain) 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 as 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.

Adjusted EBITDA

Management uses Adjusted EBITDA in its analysis of the performance of the business and operations of the Company. Management believes Adjusted EBITDA is useful to investors because it excludes various items that management believes are not indicative of operating performance, and that it is an informative measure to use in computing various financial ratios to evaluate the Company. The Company defines Adjusted EBITDA as EBITDAre (defined above) 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, and which is then multiplied by four to get an annual amount.

The Company’s method of calculating Adjusted EBITDA may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. Adjusted EBITDA 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 EBITDA Ratio

Net Debt to Adjusted EBITDA 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 Net Debt to Adjusted EBITDA may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. Reconciliations of debt and net income (both reported in accordance with GAAP) to Net Debt, EBITDAre, Adjusted EBITDA, and Net Debt to Adjusted EBITDA Ratio (each of which is a non-GAAP financial measure) are included in the following tables (unaudited, in thousands):

 

September 30,

 

2019

 

2018

Net Debt:

 

 

 

Debt

$

3,101,611

 

 

$

2,954,962

 

Deferred financing costs, net

38,384

 

 

35,033

 

Cash and cash equivalents

(115,839

)

 

(74,153

)

Net Debt

$

3,024,156

 

 

$

2,915,842

 

 

 

 

 

 

Three Months Ended September 30,

 

2019

 

2018

EBITDAre and Adjusted EBITDA:

 

 

 

Net income

$

34,003

 

 

$

91,833

 

Interest expense, net

36,640

 

 

33,576

 

Income tax (benefit) expense

(600

)

 

515

 

Depreciation and amortization

45,134

 

 

38,623

 

Gain on sale of real estate

(14,303

)

 

(2,215

)

Gain on sale of investment in direct financing leases

 

 

(5,514

)

Costs associated with loan refinancing or payoff

38,407

 

 

 

Equity in (income) loss from joint ventures

435

 

 

(20

)

EBITDAre (for the quarter)

$

139,716

 

 

$

156,798

 

 

 

 

 

Severance expense

1,521

 

 

 

Transaction costs

5,959

 

 

1,101

 

Prepayment fees

(1,760

)

 

(20,026

)

Adjusted EBITDA (for the quarter)

$

145,436

 

 

$

137,873

 

 

 

 

 

Adjusted EBITDA (1)

$

581,744

 

 

$

551,492

 

 

 

 

 

Net Debt/Adjusted EBITDA Ratio

5.2

 

 

5.3

 

 

 

 

 

(1) Adjusted EBITDA for the quarter is multiplied by four to calculate an annual amount.

About EPR Properties

EPR Properties is a specialty real estate investment trust (REIT) that invests in properties in select market segments which require unique industry knowledge, while offering the potential for stable and attractive returns. Our total investments are nearly $7.2 billion and our primary investment segments are Entertainment, Recreation and Education. We adhere to rigorous underwriting and investing criteria centered on key industry and property level cash flow standards. We believe our focused niche approach provides a competitive advantage, and the potential for higher growth and better yields.

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

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 acquisition or disposition of properties, our capital resources, future expenditures for development projects, expected dividend payments, and our results of operations and financial condition. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of actual events. There is no assurance 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. While references to commitments for investment spending are based on present commitments and agreements of the Company, we cannot provide assurance that these transactions will be completed on satisfactory terms. In addition, references to our budgeted amounts and guidance are forward-looking statements. 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.

View source version on businesswire.com:https://www.businesswire.com/news/home/20191029005980/en/

CONTACT: EPR Properties

Brian Moriarty, 888-EPR-REIT

www.eprkc.com

KEYWORD: KANSAS MISSOURI UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: COMMERCIAL BUILDING & REAL ESTATE CONSTRUCTION & PROPERTY FILM & MOTION PICTURES FINANCE BANKING PROFESSIONAL SERVICES REIT ENTERTAINMENT

SOURCE: EPR Properties

Copyright Business Wire 2019.

PUB: 10/29/2019 04:15 PM/DISC: 10/29/2019 04:15 PM

http://www.businesswire.com/news/home/20191029005980/en