Epr Properties · NYSE:EPR
Epr Properties — Q2 2019 Earnings Presentation
21 slides from Epr Properties's earnings presentation, Jul 31, 2019
Slide 1: Q2 2019 Earnings Call
Q2 2019 EARNINGS CALL AUGUST 1, 2019
Slide 2: Introductory Comments
INTRODUCTORY COMMENTS This information is as of the date indicated and, to our knowledge, was timely and accurate when presented. We are under no obligation to update or remove outdated information other than as required by applicable law or regulation. 2
Slide 3: Headlines: Productive Quarter Anchored by Strong Investment Spending Volume
HEADLINES 1. Productive Quarter Anchored by Strong Investment Spending Volume 3
Slide 4: Headlines: Enhanced Portfolio Credit Profile
HEADLINES 1. Productive Quarter Anchored by Strong Investment Spending Volume 2. Enhanced Portfolio Credit Profile 4
Slide 5: Headlines: Experiential Assets Continue to Perform
HEADLINES 1. Productive Quarter Anchored by Strong Investment Spending Volume 2. Enhanced Portfolio Credit Profile 3. Experiential Assets Continue to Perform 5
Slide 6: Headlines: Strengthened Balance Sheet Capacity
HEADLINES 1. Productive Quarter Anchored by Strong Investment Spending Volume 2. Enhanced Portfolio Credit Profile 3. Experiential Assets Continue to Perform 4. Strengthened Balance Sheet Capacity 6
Slide 7: Headlines: Increasing Investment Spending Guidance
HEADLINES 1. Productive Quarter Anchored by Strong Investment Spending Volume 2. Enhanced Portfolio Credit Profile 3. Experiential Assets Continue to Perform 4. Strengthened Balance Sheet Capacity 5. Increasing Investment Spending Guidance 7
Slide 8: Portfolio Update
PORTFOLIO UPDATE 8
Slide 9: Portfolio Statistics
PORTFOLIO STATISTICS $7.3B+ TOTAL INVESTMENTS* 417 PROPERTIES IN SERVICE 99% OCCUPANCY $391.9M Q2 INVESTMENT SPENDING 1.86X RENT ** * See investor supplementals for the applicable periods for definitions and calculations of these non-GAAP COVERAGE measures // ** Coverage is weighted average for the
Slide 10: Entertainment Segment Highlights
ENTERTAINMENT SEGMENT HIGHLIGHTS UPDATES • YTD 2019 Box Office revenue softer vs. record-breaking prior year* but expect full year to be flat or slightly up • Regal transaction demonstrates benefit of our deep industry $3.4B ** relationships INVESTED 195 PROPERTIES IN SERVICE 2 PROPERTIES UNDER DEVE
Slide 11: Recreation Segment Updates
RECREATION SEGMENT UPDATES HIGHLIGHTS • Tenant credit will be strengthened with Vail Resort’s announced purchase of Peak Resorts $2.4B * • The Kartrite Hotel & Indoor Waterpark opened and is building INVESTED awareness 83 PROPERTIES IN SERVICE 1 PROPERTY UNDER DEVELOPMENT** GOLF ENTERTAINMENT COMPLE
Slide 12: Education Segment Updates
EDUCATION SEGMENT UPDATES HIGHLIGHTS • Received $58 million in disposition proceeds CLA transition to Crème de la Crème going well, 7 completed and $1.3B • * remaining 14 anticipated over the next 6 months INVESTED 138 PROPERTIES IN SERVICE 4 PROPERTIES UNDER DEVELOPMENT** PUBLIC CHARTER SCHOOLS 57
Slide 13: Financial Review
FINANCIAL REVIEW 13
Slide 14: Financial Highlights: Financial Performance
FINANCIAL HIGHLIGHTS FINANCIAL PERFORMANCE Quarter ended June 30, (In millions except per-share data) 2019 2018 $ CHANGE % CHANGE Total Revenue $175.7 $202.9 ($27.2) (13%) Net Income - Common 60.6 85.5 (24.9) (29%) FFO – Common* 93.4 139.0 (45.6) (33%) FFO as adj. – Common* 105.2 141.8 (36.6) (26%)
Slide 15: Financial Highlights: Key Ratios
FINANCIAL HIGHLIGHTS KEY RATIOS * Quarter ended June 30, 2019 2018 Fixed charge coverage 3.2x 3.2x Debt service coverage 3.7x 3.7x Interest coverage 3.7x 3.7x Net debt to Adjusted EBITDA 5.8x 5.6x FFO as adjusted payout 83% 58% Note: Schlitterbahn mortgage notes totaling ~$190M were repaid in full o
Slide 16: Capital Markets & Liquidity Update
CAPITAL MARKETS & LIQUIDITY UPDATE 16
Slide 17: Capital Markets Update
CAPITAL MARKETS UPDATE TOTAL DEBT IS $3.2B AT 6/30/19 • $3.0B is fixed rate or fixed through interest rate swaps, wtd. avg. = 4.6% • $240M outstanding on $1B revolver at 6/30/19; $6.9M unrestricted cash • Weighted average debt maturity of ~6 years; No debt maturities until 2022 SIGNIFICANT LOW COST
Slide 18: Confirming 2019 Guidance
CONFIRMING 2019 GUIDANCE 2019 GUIDANCE FF0 AS ADJUSTED PER SHARE Revised Guidance $5.32 - $5.48 Prior Guidance $5.30 - $5.50 INVESTMENT SPENDING Revised Guidance $700M - $850M Prior Guidance $600M - $800M DISPOSITION PROCEEDS Guidance $300M - $400M 18
Slide 19: Reconciliation of Midpoint of FFOAA/Share Guidance
RECONCILIATION OF MIDPOINT OF FFOAA/SHARE* GUIDANCE FFO as adjusted per share (previous guidance midpoint) $5.40 Increased investment spending and favorable timing 0.05 Increased percentage rent and participating interest 0.03 Increase in size and timing of equity issuance (0.07) Increase in G&A (0.
Slide 20: Closing Comments
CLOSING COMMENTS 20
Slide 21: EPR Properties contact details
EPR Properties 909 Walnut Street, Suite 200 Kansas City, MO 64106 www.eprkc.com 816-472-1700 info@eprkc.com