EPR Properties · NYSE:EPR

EPR Properties — Entertainment Properties Trust — Investor Presentation (November 2006)

28 slides from EPR Properties's investor presentation, November 2006

  1. Slide 1: Entertainment Properties Trust

    ENTERTAINMENT PROPERTIES TRUST

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement Except for historical information, the statements made in this presentation are forward-looking statements involving significant risks and uncertainties. These risks and uncertainties, including those related to the Company’s future results, levels of activity and performance,

  3. Slide 3: Mission: Shareholder Value

    . PERTIES TRUST MISSION: Shareholder Value

  4. Slide 4: Agenda

    Agenda • Exhibition Industry Review • EPR Properties Overview • Financial Results Review • Share Value Analysis

  5. Slide 5: Exhibition Industry Review

    Exhibition Industry Review

  6. Slide 6: Box Office Revenues

    $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 19 85 19 8 19 6 8 19 7 8 19 8 89 19 90 19 9 19 1 9 19 2 93 19 94 19 95 19 9 Box Office Revenues 19 6 9 19 7 98 19 99 20 0 20 0 0 20 1 0 20 2 03 20 04 20 05

  7. Slide 7: Box Office Revenue CAGR

    Box Office Revenue CAGR 9.0% 5 Y R C A GR s 10 Y R C A G R s Linear ( 10 Y R C A G R s) 8.0% Linear ( 5 Y R C A G R s) 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 85 87 89 91 93 95 97 99 01 03 05 19 19 19 19 19 19 19 19 20 20 20

  8. Slide 8: Admission (Ticket) Prices

    $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 19 19 8 5 19 8 6 1 98 7 19 8 8 19 8 9 19 9 0 19 9 1 19 9 2 1 99 3 19 9 4 19 9 5 19 9 6 Linear 1 99 7 CHANGE (CHANGE) 1998 Avg. Ticket 20 9 9 20 0 0 2 00 1 Admission (Ticket) Prices 2002 20 0 3 20 0 4 05 0% 2% 4% 6% 8% -4% -2% 10%

  9. Slide 9: Admissions

    - 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 19 92 19 93 19 94 19 95 Admissions 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05

  10. Slide 10: Break Even Analysis

    Break Even Analysis Approx. COGS Portfolio Total Full Variable Average Portfolio Variable Only Admission Revenue 69% 450 221 305 Concessions 29% 190 93 128 Other Revenue 2% 10 6 9 Total Revenue 100% 650 321 -51% 442 -32% Film Cost -37% (240) (117) (162) Concessions Cost -3% (20) (11) (15) Gross Marg

  11. Slide 11: EPR Properties Overview

    EN TERTAINM™MEN T PROPERTIES TRUST EPR Properties Overview

  12. Slide 12: Portfolio Information

    Portfolio Information EPR’s Portfolio 69 Megaplex Theatres Other ¾ 1,359 screens Entertainment 3% Retail Centers 17% Megaplex ¾ 100% occupancy Theatres 80% ¾ 5.9 M SF [7.4M total] ¾ Avg. screens = 20 ¾ Avg. age < 5 years ¾ ~700 acres

  13. Slide 13: Property Map

    Property Map Geographically diverse portfolio in 25 states & Canada - Indicate asset locations

  14. Slide 14: Portfolio Metro Rankings

    Portfolio Metro Rankings „ 36% @ #1 † e.g. LA, Chicago, Miami, DC, Denver, San Diego, Detroit, KC, Raleigh, Little Rock „ 63% @ #1-3 † e.g. Houston, Phoenix, Dallas, Chicago, Toronto, San Antonio, Tampa „ 91% @ Top 10 † New York, Philadelphia, St. Louis, Toronto, Houston, Miami, Dallas

  15. Slide 15: Financial Results Review

    Financial Results Review

  16. Slide 16: Balance Sheet Highlights

    Balance Sheet Highlights 3 YR 5 YR 2002 2003 2004 2005 CAGR CAGR Assets $730 966 1,213 1,414 25% 22% Asset Growth 25% 32% 26% 17% Debt $347 507 593 715 27% 24% Leverage % 47% 52% 49% 51%

  17. Slide 17: Operating Performance History

    Operating Performance History CAGR-CAGR- 2002 2003 2004 2005 3 Yr 5 Yr Revenue $ 71.6 93.5 133.3 164.8 32% 25% growth rate 31% 31% 43% 24% Net Income 27.9 32.1 48.3 57.7 27% 25% FFO 42.1 49.9 71.6 85.0 26% 19% FFO/common share 2.37 2.62 3.03 3.33 12% 7% growth rate 2% 10% 16% 10% Cmn. dividend/share

  18. Slide 18: General and Administrative Expense

    General and Administrative Expense 2002 2003 2004 2005 Revenue $ 71.6 93.5 133.3 164.8 G & A Expense $ 3.3 4.8 6.1 7.2 (includes stock based comp) % of Revenue 5% 5% 5% 4% Employees 7 9 11 13 Revenue per Employee $ 10.2 10.4 12.1 12.7 ƒ We outsource property management, legal support and constructio

  19. Slide 19: Capital Market Access for Megaplex Theatre Property Financing

    Capital Market Access for Megaplex Theatre Property Financing… Not Mission Impossible

  20. Slide 20: Capital Structure – June 30, 2006

    Capital Structure – June 30, 2006 Debt Fixed $ 614 (Avg rate – 6.05%) Variable 119 (Libor + 130-175 pts.)* *Amended 2006 – incr. to $235 mm, 50 Total Debt $ 733 bpts. lower; secured to unsecured Equity Preferred – Series A $ 57 (Div = 9.5% - callable in 2007) Preferred – Series B 80 (Div = 7.75% - c

  21. Slide 21: Historical Financial Results Summary

    Historical Financial Results Summary „ Conservative Balance Sheet Management „ Sustained Double Digit Growth in Assets, Revenues and Profits „ Significant Annual Dividend Increases „ Low Overhead/Variable Cost Structure „ Ready Access to Capital Markets/Decreasing Cost of Capital

  22. Slide 22: Share Value Analysis

    EN TERTAINM™MEN T PROPERTIES TRUST Share Value Analysis

  23. Slide 23: EPR Comparative Performance

    EPR Comparative Performance Total Return – Five Years Total Return – Three Years 1. Entertainment Ppts Tr 317.7% 1. Entertainment Ppts Tr 86.2% 2. CentraCore Ppts Tr 193.4% 2. Agree Realty Corp 66.2% 3. Agree Realty Corp 165.1% 3. National Retail Ppts 55.4% 4. Getty Realty Corp 150.6% 4. Gladstone C

  24. Slide 24: Triple Net REITS – Total Return

    Triple Net REITS – Total Return 350% 318% 300% 250% 193% 5 Year 200% 3 Year 165% 151% 149% 150% 140% 117% 116% 100% 86% 56% 50% 66% 38% 55% 55% 49% 50% 50% 41% 45% 32% 5% 0% 0% EPR CPV ADC GTY NNN O OLP LXP PCL TSY GOOD

  25. Slide 25: Despite strong performance, we still appear undervalued

    Despite this history of strong financial performance and excellent shareholder returns, we still appear to be undervalued relative to certain of our peers and versus the REIT universe…

  26. Slide 26: Triple Net REITS – Valuation

    Triple Net REITS – Valuation Price/2006 Projected FFO Price/2007 Projected FFO 1. Getty Realty Corp 15.1x 1. Getty Realty Corp 14.7 x 2. Gladstone Com Corp 15.0x 2. Agree Realty Corp 14.1x 3. Realty Income Corp 14.4x 3. Realty Income Corp 13.6x 4. Agree Realty Corp 14.4x 4. Gladstone Com Corp 13.3x

  27. Slide 27: Triple Net REITS – Valuation

    Triple Net REITS – Valuation 16.0 15.1 15.0 14.4 14.4 Price/2006 Projected 14.0 13.3 13.0 FFO (Multiple) 12.5 12.1 12.0 11.2 11.1 11.0 10.6 10.0 8.0 6.0 4.0 2.0 0.0 GTY GOOD O ADC EPR NNN CPV LSE OLP SFC PCL TSY

  28. Slide 28: EPR Comparative Performance

    EPR Comparative Performance Current Yield AFFO Payout Ratio 1. Plum Creek Timber 4.72% 1. Newkirk Realty Tr 70.5% 2. Entertainment Ppts Tr 5.53% 2. One Liberty Ppts 73.3% 3. Agree Realty Corp 5.80% 3. Entertainment Ppts Tr 77.7% 4. One Liberty Ppts 6.00% 4. Lexington Corp Ppts 78.9% 5. Getty Realty

Entertainment Properties Trust — Investor Presentation (November 2006) on 6ix