Epr Properties · NYSE:EPR
Epr Properties — Q3 2018 Earnings Presentation
23 slides from Epr Properties's earnings presentation, Oct 29, 2018
Slide 1: Q3 2018 Earnings Call
Q3 2018 EARNINGS CALL OCTOBER 30, 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 We are under no obligation to update or remove outdated information other than as required by applicable law or regulation.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 Ca@RiMENTS
Slide 3: Headlines: Strong Quarter Boosted By Prepayment Fees
HEADLINES 1. Strong Quarter Boosted By Prepayment Fees 3
Slide 4: Headlines: Tenant Segments Demonstrate Strength
HEADLINES 1. Strong Quarter Boosted By Prepayment Fees 2. Tenant Segments Demonstrate Strength 4
Slide 5: Headlines: Capital Recycling Plan Execution
HEADLINES 1. Strong Quarter Boosted By Prepayment Fees 2. Tenant Segments Demonstrate Strength 3. Capital Recycling Plan Execution 5
Slide 6: Headlines: Balance Sheet Strength
HEADLINES 1. Strong Quarter Boosted By Prepayment Fees 2. Tenant Segments Demonstrate Strength 3. Capital Recycling Plan Execution 4. Balance Sheet Strength 6
Slide 7: Headlines: Increasing Earnings Guidance
HEADLINES 1. Strong Quarter Boosted By Prepayment Fees 2. Tenant Segments Demonstrate Strength 3. Capital Recycling Plan Execution 4. Balance Sheet Strength 5. Increasing Earnings Guidance 7
Slide 8: Portfolio Update
PORTFOLIO UPDATE
Slide 9: Portfolio Statistics
PORTFOLIO STATISTICS $6.7B+ 391 TOTAL PROPERTIES INVESTMENTS IN SERVICE 99% 1.87X RENT OCCUPANCY COVERAGE* $355M $399M YTD INVESTMENT YTD DISPOSITION SPENDING PROCEEDS * Coverage is weighted average for the segments. Theatres and Family Entertainment Centers data is TTM June 2018. Golf Entertainment
Slide 10: Entertainment: EPR Portfolio Detail
ENTERTAINMENT EPR PORTFOLIO DETAIL $3.0B 169 1* 23** 1.86x $10.7M INVESTED PROPERTIES PROPERTY OPERATORS RENT Q3 2018 IN SERVICE UNDER COVERAGE INVESTMENT DEVELOPMENT SPENDING UPDATES YTD Box Office revenue is up over 10%*** Optimistic about full year Box Office results * Property not yet in service
Slide 11: Recreation: EPR Portfolio Detail
RECREATION EPR PORTFOLIO DETAIL $2.1B 75 5* 17 2.07x $73.8M INVESTED PROPERTIES PROPERTIES OPERATORS RENT Q3 2018 IN SERVICE UNDER COVERAGE INVESTMENT DEVELOPMENT SPENDING UPDATES Received ~$95M proceeds from Och-Ziff Real Estate loan paydown, representing payment in full and $20M in prepayment fees
Slide 12: Education: EPR Portfolio Detail
EDUCATION EPR PORTFOLIO DETAIL $1.4B 146 3* 60 1.49x $32M INVESTED PROPERTIES PROPERTIES OPERATORS RENT Q3 2018 IN SERVICE UNDER COVERAGE INVESTMENT DEVELOPMENT SPENDING UPDATES Sold five properties in July 2018, total net proceeds of $55.4M; reduced exposure to Imagine Schools Children’s Learning A
Slide 13: Summary: Disposition and Investment Spending Guidance
SUMMARY DISPOSITION GUIDANCE $450M – $500M INVESTMENT SPENDING GUIDANCE $500M – $600M 13
Slide 14: Financial Review
FINANCIAL REVIEW P<] EPR Properties
Slide 15: Financial Performance: Quarter Ended September 30, 2018
FINANCIAL PERFORMANCE QUARTER ENDED SEPTEMBER 30, 2018 2017 $ CHANGE % CHANGE Total Revenue $176.4 $151.4 $25.0 17% Net Income - Common 85.8 57.0 28.8 51% FFO – Common* 116.5 90.5 26.0 29% FFO as adj. – Common* 119.6 93.3 26.3 28% Net Income/share – Common 1.15 0.77 0.38 49% FFO/share – Common* 1.54
Slide 16: Financial Performance: Nine Months Ended September 30, 2018
FINANCIAL PERFORMANCE NINE MONTHS ENDED SEPTEMBER 30, 2018 2017 $ CHANGE % CHANGE Total Revenue $534.2 $428.3 $105.9 25% Net Income - Common 194.8 179.6 15.2 8% FFO – Common* 316.6 249.4 67.2 27% FFO as adj. – Common* 355.4 264.7 90.7 34% Net Income/share – Common 2.62 2.55 0.07 3% FFO/share – Commo
Slide 17: Key Ratios
KEY RATIOS* QUARTER ENDED SEPTEMBER 30, 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 5.3x 5.7x FFO as adjusted payout 68% 81% *See investor supplementals for the applicable periods for definitions and calculations o
Slide 18: Capital Markets and Liquidity Update
CAPITAL MARKETS AND LIQUIDITY UPDATE
Slide 19: Capital Markets Update
CAPITAL MARKETS UPDATE TOTAL DEBT IS $3.0B AT 9/30/18 • $2.9B is fixed rate or fixed through interest rate swaps, wtd. avg. = 4.6% • No outstanding balance on $1B revolver at 9/30/18; $74.2M unrestricted cash • Weighted average debt maturity of ~7 years; No debt maturities until 2022 CAD DERIVATIVE
Slide 20: 2018 Guidance
2018 GUIDANCE FFO AS ADJUSTED PER SHARE Revised Guidance $6.03 - $6.09 Prior Guidance $5.97 - $6.07 INVESTMENT SPENDING Revised Guidance $500M - $600M Prior Guidance $450M - $650M DISPOSITION PROCEEDS Revised Guidance $450M - $500M Prior Guidance $450M - $500M 20
Slide 21: Reconciliation of Midpoint of FFOAA/Share Guidance
* RECONCILIATION OF MIDPOINT OF FFOAA/SHARE GUIDANCE FFO as adjusted per share (previous guidance midpoint) $6.02 Additional prepayment fees from OZRE 0.06 Lower termination fees related to Education Properties (0.06) Net change in prepayment and termination fees 0.00 Additional payments received fr
Slide 22: Closing Comments
CLOSING COMMENTS
Slide 23: EPR Properties
EPR Properties 909 Walnut Street, Suite 200 Kansas City, MO 64106 www.eprkc.com (888) EPR REIT info@eprkc.com