Epr Properties · NYSE:EPR
Epr Properties — Q2 2018 Earnings Presentation
24 slides from Epr Properties's earnings presentation, Jul 30, 2018
Slide 1: Q2 2018 Earnings Call
Q2 2018 EARNINGS CALL JULY 31, 2018 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 We are under no obligation to update or remove outdated information other than as required by applicable law or regulation.
Slide 2: Introductory Comments
INTRODUCTORY COMMENTS
Slide 3: Headlines: Record Quarterly Revenue and Earnings
HEADLINES 1. Record Quarterly Revenue and Earnings 3
Slide 4: Headlines: Capital Recycling Strategy
HEADLINES 1. Record Quarterly Revenue and Earnings 2. Successfully Executing our Capital Recycling Strategy 4
Slide 5: Headlines: Strong Tenant Performance
HEADLINES 1. Record Quarterly Revenue and Earnings 2. Successfully Executing our Capital Recycling Strategy 3. Recent Results Reflect Strong Tenant Performance 5
Slide 6: Headlines: Increasing Earnings Guidance
HEADLINES 1. Record Quarterly Revenue and Earnings 2. Successfully Executing our Capital Recycling Strategy 3. Recent Results Reflect Strong Tenant Performance 4. Increasing Earnings Guidance 6
Slide 7: Portfolio Update
PORTFOLIO UPDATE
Slide 8: Portfolio Statistics
PORTFOLIO STATISTICS $6.7B+ 396 TOTAL PROPERTIES INVESTMENTS IN SERVICE 99% 1.77X RENT OCCUPANCY COVERAGE* $129.9M $236.9M Q2 INVESTMENT Q2 DISPOSITION SPENDING PROCEEDS * Coverage is weighted average for the segments. Theatres and Family Entertainment Centers data is TTM March 2018. Golf Entertainm
Slide 9: Entertainment: EPR Portfolio Detail
ENTERTAINMENT EPR PORTFOLIO DETAIL $3.0B 169 1* 23** 1.67x $23.8M INVESTED PROPERTIES PROPERTY OPERATORS RENT Q2 2018 IN SERVICE UNDER COVERAGE INVESTMENT DEVELOPMENT SPENDING UPDATES YTD Box Office revenue is up ~8%*** Box Office expected to end the year up 2% to 4% * Property not yet in service ,
Slide 10: Recreation: EPR Portfolio Detail
RECREATION EPR PORTFOLIO DETAIL $2.1B 80 5* INVESTED PROPERTIES PROPERTIES IN SERVICE UNDER DEVELOPMENT 21 2.05x $88.6M OPERATORS RENT Q2 2018 COVERAGE INVESTMENT SPENDING *Properties not yet in service Golf Ski Attractions Other Recreation 10
Slide 11: World's Deepest Geothermal Hot Spring
=o WORLD'S DEEPEST GEOTHERMAL HOT SPRING, CL oe 1s & Availability kartrite & x | EPR Properties
Slide 12: Recreation: EPR Portfolio Detail
RECREATION EPR PORTFOLIO DETAIL $2.1B 80 5* 21 2.05x $88.6M INVESTED PROPERTIES PROPERTIES OPERATORS RENT Q2 2018 IN SERVICE UNDER COVERAGE INVESTMENT DEVELOPMENT SPENDING UPDATES Received ~$221M proceeds from Och-Ziff Real Estate loan paydown, expect additional ~$90M in Q4 Through April, ski visits
Slide 13: Education: EPR Portfolio Detail
EDUCATION EPR PORTFOLIO DETAIL $1.4B 146 6* 58 1.47x $17.4M INVESTED PROPERTIES PROPERTIES OPERATORS RENT Q2 2018 IN SERVICE UNDER COVERAGE INVESTMENT DEVELOPMENT SPENDING UPDATES Reduced exposure to Imagine Schools – sold four properties in July 2018, netting ~$43M New agreement with Children’s Lea
Slide 14: Summary
SUMMARY PLANNED DISPOSITIONS $450M – $500M INVESTMENT SPENDING GUIDANCE $450M – $650M 14
Slide 15: Financial Review
FINANCIAL REVIEW na EPR Properties
Slide 16: Financial Performance: Quarter Ended June 30
FINANCIAL PERFORMANCE QUARTER ENDED JUNE 30, 2018 2017 $ CHANGE % CHANGE Total Revenue $202.9 $147.8 $55.1 37% Net Income - Common 85.5 74.6 10.9 15% FFO – Common* 139.0 85.0 54.0 64% FFO as adj. – Common* 141.8 94.9 46.9 49% Net Income/share – Common 1.15 1.02 0.13 13% FFO/share – Common* 1.84 1.15
Slide 17: Financial Performance: Six Months Ended June 30
FINANCIAL PERFORMANCE SIX MONTHS ENDED JUNE 30, 2018 2017 $ CHANGE % CHANGE Total Revenue $357.8 $276.9 $80.9 29% Net Income - Common 109.0 122.5 (13.5) (11%) FFO – Common* 200.1 158.9 41.2 26% FFO as adj. – Common* 235.8 171.4 64.4 38% Net Income/share – Common 1.47 1.78 (0.31) (17%) FFO/share – Co
Slide 18: Key Ratios
KEY RATIOS* QUARTER ENDED JUNE 30, 2018 2017 Fixed charge coverage 3.2x 3.1x Debt service coverage 3.7x 3.6x Interest coverage 3.7x 3.6x Net debt to Adjusted EBITDA 5.6x 5.3x FFO as adjusted payout 58% 79% *See investor supplementals for the applicable periods for definitions and calculations of the
Slide 19: Capital Markets and Liquidity Update
CAPITAL MARKETS AND LIQUIDITY UPDATE
Slide 20: Capital Markets Update
CAPITAL MARKETS UPDATE TOTAL DEBT IS $3.0B AT 6/30/18 • $2.9B is fixed rate or fixed through interest rate swaps, wtd. avg. = 4.6% • $30M outstanding on $1B revolver at 6/30/18; $3.0M unrestricted cash ISSUANCE OF SENIOR UNSECURED NOTES • On April 16, 2018, issued $400M of 10-year senior unsecured n
Slide 21: 2018 Guidance
2018 GUIDANCE FFO AS ADJUSTED PER SHARE Revised Guidance $5.97 - $6.07 Prior Guidance $5.75 - $5.90 INVESTMENT SPENDING Revised Guidance $450M - $650M Prior Guidance $400M - $700M DISPOSITION PROCEEDS Revised Guidance $450M - $500M Prior Guidance $350M - $450M 21
Slide 22: Reconciliation of Midpoint of FFOAA/Share Guidance
* RECONCILIATION OF MIDPOINT OF FFOAA/SHARE GUIDANCE FFO as adjusted per share (previous guidance midpoint) $5.82 Additional prepayment fees from OZRE/Chicago 0.23 observation deck Lost interest income, net, related to additional note (0.02) pay-downs Lower termination fees related to Education (0.0
Slide 23: Closing Comments
CLOSING COMMENTS
Slide 24: EPR Properties Contact
EPR Properties 909 Walnut Street, Suite 200 Kansas City, MO 64106 www.eprkc.com (888) EPR REIT info@eprkc.com