Epr Properties · NYSE:EPR
Epr Properties — FY2018 Earnings Presentation
26 slides from Epr Properties's earnings presentation, Feb 25, 2019
Slide 1: Q4 & Year End 2018 Earnings Call
Q4 & YEAR END 2018 EARNINGS CALL FEBRUARY 26, 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 We are under no obligation to update or remove outdated information other than as required by applicable law or regulation. 2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: Strong Fourth Quarter Caps a Successful Year
HEADLINES 1. Strong Fourth Quarter Caps a Successful Year 3
Slide 4: Headlines: Investment Spending Regains Momentum
HEADLINES 1. Strong Fourth Quarter Caps a Successful Year 2. Investment Spending Regains Momentum 4
Slide 5: Headlines: Tenant Segments Broadly Strong
HEADLINES 1. Strong Fourth Quarter Caps a Successful Year 2. Investment Spending Regains Momentum 3. Tenant Segments Broadly Strong, New Tenant for CLA Properties 5
Slide 6: Headlines: Monthly Dividend Increase
HEADLINES 1. Strong Fourth Quarter Caps a Successful Year 2. Investment Spending Regains Momentum 3. Tenant Segments Broadly Strong, New Tenant for CLA Properties 4. Monthly Dividend Increase 6
Slide 7: Headlines: Introducing 2019 Guidance
HEADLINES 1. Strong Fourth Quarter Caps a Successful Year 2. Investment Spending Regains Momentum 3. Tenant Segments Broadly Strong, New Tenant for CLA Properties 4. Monthly Dividend Increase 5. Introducing 2019 Guidance 7
Slide 8: Portfolio Update
PORTFOLIO UPDATE 8
Slide 9: Portfolio Statistics
PORTFOLIO STATISTICS $6.8B+ TOTAL INVESTMENTS 394 PROPERTIES IN SERVICE 99% OCCUPANCY $217M Q4 INVESTMENT SPENDING $572M 2018 INVESTMENT SPENDING 1.92X RENT * Coverage is weighted average for the segments. Theatres and Family Entertainment Centers data is COVERAGE* TTM September 2018. Golf Entertain
Slide 10: Entertainment Segment Highlights
ENTERTAINMENT SEGMENT HIGHLIGHTS UPDATES − 2018 Box Office revenue was up over 7%* and attendance was up over 6%* − Another strong year expected for Box Office revenue in 2019 with $3.0B a promising lineup of films INVESTED 170 PROPERTIES IN SERVICE 22** OPERATORS MEGAPLEX THEATRES 1.92x RENT COVERA
Slide 11: Recreation Segment Updates
RECREATION SEGMENT UPDATES HIGHLIGHTS – Ski admissions up 13% and revenue up 8% through January – Investment spending $2.3B • Two recreation anchored lodging properties in St. Pete Beach, FL INVESTED • City Museum in St Louis, MO • The Kartrite Resort & Indoor Waterpark in the Catskills 80 PROPERTIE
Slide 12: Recreation Other Recreation: St. Pete Beach Acquisitions
RECREATION OTHER RECREATION- RECREATION ANCHORED LODGING St. Pete Beach Acquisitions Two recreation anchored lodging assets which include – Combined 258 rooms and private beachfront on the Gulf of Mexico – Long history with significant food and beverage contribution Facilities upgrade of $24M planne
Slide 13: The Kartrite Resort & Indoor Waterpark
RECREATION OTHER RECREATION- RECREATION ANCHORED LODGING The Kartrite Resort & Indoor Waterpark Recreation anchored lodging asset, will be New York’s biggest indoor waterpark – 324 suites and multiple dining options – Variety of indoor entertainment activities in addition to waterpark 13
Slide 14: Recreation Attraction: City Museum in St. Louis
RECREATION ATTRACTION City Museum in St. Louis A highly interactive and artistic children’s museum with a 20-year history of delighting guests 14
Slide 15: Education Segment Updates
EDUCATION SEGMENT UPDATES HIGHLIGHTS – Received $42.3 million in disposition proceeds – New lease signed in Feb. with Crème de la Crème to take over $1.4B operations at all 21 schools operated by Children’s Learning INVESTED Adventure 143 PROPERTIES IN SERVICE 5* PROPERTIES UNDER DEVELOPMENT PUBLIC
Slide 16: Summary: 2019 Investment Spending Guidance
SUMMARY 2019 INVESTMENT SPENDING GUIDANCE $600M – $800M 2019 DISPOSITION PROCEEDS GUIDANCE $100M – $200M 16
Slide 17: Financial Review
FINANCIAL REVIEW 17
Slide 18: Financial Highlights: Quarter Financial Performance
FINANCIAL HIGHLIGHTS FINANCIAL PERFORMANCE Quarter ended December 31, (In millions except per-share data) 2018 2017 $ CHANGE % CHANGE Total Revenue $166.5 $147.7 $18.8 13% Net Income - Common 48.0 54.7 (6.7) (12%) FFO – Common* 97.7 78.0 19.7 25% FFO as adj. – Common* 105.1 95.9 9.2 10% Net Income/s
Slide 19: Financial Highlights: Year Financial Performance
FINANCIAL HIGHLIGHTS FINANCIAL PERFORMANCE Year ended December 31, (In millions except per-share data) 2018 2017 $ CHANGE % CHANGE Total Revenue $700.7 $576.0 $124.7 22% Net Income - Common 242.8 234.2 8.6 4% FFO – Common* 414.3 327.4 86.9 27% FFO as adj. – Common* 460.4 360.5 99.9 28% Net Income/sh
Slide 20: Financial Highlights: Key Ratios
FINANCIAL HIGHLIGHTS KEY RATIOS Quarter ended December 31, 2018 2017 Fixed charge coverage 3.3x 3.1x Debt service coverage 3.8x 3.6x Interest coverage 3.8x 3.6x Net debt to Adjusted EBITDA 5.5x 5.4x FFO as adjusted payout 78% 79% *See investor supplementals for the applicable periods for definitions
Slide 21: Capital Markets & Liquidity Update
CAPITAL MARKETS & LIQUIDITY UPDATE 21
Slide 22: Capital Markets Update
CAPITAL MARKETS UPDATE TOTAL DEBT IS $3.0B AT 12/31/18 • $2.9B is fixed rate or fixed through interest rate swaps, wtd. avg. = 4.6% • $30M outstanding on $1B revolver at 12/31/18; $5.9M unrestricted cash • Weighted average debt maturity of ~7 years; No debt maturities until 2022 LOW COST EQUITY ISSU
Slide 23: Introducing 2019 Guidance
INTRODUCING 2019 GUIDANCE 2019 GUIDANCE FF0 AS ADJUSTED PER SHARE Guidance $5.30 - $5.50 INVESTMENT SPENDING Guidance $600M - $800M DISPOSITION PROCEEDS Guidance $100M - $200M 23
Slide 24: FFOAA Per Share Reconciliation
FFOAA PER SHARE RECONCILIATION ANNUALIZED Q4 RESULTS VS. 2019 GUIDANCE MIDPOINT Q4 2018 FFOAA/share* $1.39 Annualization x4 Annualized FFOAA/share* $5.56 Lower term/prepayment fees vs. Q4 annualized (.16) Lower % rent/participating interest vs. Q4 annualized (.13) Kartrite results (primarily lower c
Slide 25: Closing Comments
CLOSING COMMENTS 25
Slide 26: EPR Properties contact details
EPR Properties 909 Walnut Street, Suite 200 Kansas City, MO 64106 www.eprkc.com 816-472-1700 info@eprkc.com