EPR Properties · NYSE:EPR
EPR Properties — NAREIT Presentation November 2010
27 slides from EPR Properties's conference presentation, November 2010
Slide 1: NAREIT Presentation – November 2010
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 We are under no obligation to update or remove outdated information other than as required by applicable law or regulation. NAREIT Presentation – November 2010 0
Slide 2: Disclaimer
Disclaimer Statements made in this presentation may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements relate to, without limitation,
Slide 3: Main Points
Main Points I. Attractive Yield II. Strong Performance, Strong Balance Sheet III. Healthy Tenant Industries (Recession Resistant) + Growth Potential 2
Slide 4: I. Attractive Yield
Attractive Yield I. fs Z a) = Z,
Slide 5: Dividend Yield
Dividend Yield All REITs-As of 11/5/10 4
Slide 6: FFO Payout Ratio
FFO Payout Ratio All REITs-As of 11/5/10 5
Slide 7: II. Strong performance, Strong balance sheet
II. Strong performance, Strong balance sheet 6
Slide 8: Top Performing Equity REIT
Top Performing Equity REIT Historical Stock Price Performance1 EPR RMZ 600% Current (as of 11/9/2010) 500% Total market cap: $3.9bn Equity market cap: $2.0bn EPR 400% 10-year total return: 627.1%2 264.4%% 300% RMZ 159.5% 200% 100% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Total Book
Slide 9: Financial Performance
Financial Performance Three Months Ended September 30, 2010 2009 $ Change Total Revenue $81.0 $65.4 $15.6 Net Income - Common 27.5 -66.8 94.3 FFO - Common 40.7 -71.2 111.9 FFO/share - Common 0.87 -2.01 2.88 FFO/share - Common, as adj. 0.87 0.86 0.01 (in millions, except per share data) 8
Slide 10: Key Ratios
Key Ratios* Interest coverage 3.5x Fixed charge coverage 2.5x Debt service coverage 2.7x *See investor supplemental for third quarter and nine months ended September 30, 2010 for definitions and calculations. 9
Slide 11: 2010 Guidance
2010 Guidance Investment Spending: $350 million FFO As Adjusted Per Share: $3.30 - $3.40 (Excludes charge of $0.34 per share for costs associated with loan refinancing) FFO Per Share: $2.96 - $3.06 (Includes charge of $0.34 per share for costs associated with loan refinancing) 10
Slide 12: 2011 Guidance
2011 Guidance Investment Spending: $300 million FFO Per Share: $3.40 - $3.60 11
Slide 13: Credit Strength
Credit Strength Key Credit Metrics 2007A 2008A 2009A 9/30/10A Debt / Adjusted EBITDA 5.5x 5.2x 5.1x 4.5x Debt / Gross Assets 46% 44% 39% 37% Debt + Preferred / Gross Assets 60% 59% 53% 50% Secured Debt / Total Real Estate Assets 50% 50% 41% 28% Unencumbered Real Estate Assets / Total 20% 23% 14% 53%
Slide 14: Debt Maturity Profile
Debt Maturity Profile1 Q1 2010 Debt maturity schedule – ($mm) $600 Consolidated mortgage debt Secured term loans and bonds Secured credit facility $439 $400 $367 171 76 $200 114 $128 $99 291 154 $0 $0 $0 2010 2011 2012 2013 2014 Thereafter Q3 2010 Debt maturity schedule – Post bond transaction ($mm)
Slide 15: Investment Grade Rating
Investment Grade Rating Company Debut Bond Moodys Moodys Baa3 Baa3 Baa3 Baa3 Fitch BBB- BBB- Fitch BBB- BBB- + S&P BB BB+ 14
Slide 16: III. Healthy Tenant Industries + Growth Potential
III. Healthy Tenant Industries + Growth Potential 15
Slide 17: Portfolio Snapshot-Nine Months Ended 9/30/10
Portfolio Snapshot-Nine Months Ended 9/30/101 Number of Property type properties EBITDA ($mm)1 % of total % Occupancy Megaplex theatres 96 $112.8 55% 100% ERCs2 9 44.5 22% 93% Charter public schools 27 19.4 10% 100% Metropolitan ski areas 11 11.1 5% 100% Vineyards and wineries 18 8.5 4% 93% Waterpar
Slide 18: Property Map
Property Map Geographically diverse portfolio in 33 states, D.C. & Canada - Megaplex Theaters - Wineries - EPR Corporate Office - Ski Properties - Entertainment Retail Center - Water Park/Concord Resort - Public Charter Schools 17
Slide 19: Operating Environment Overview
Operating Environment Overview EPR’s tenants have outperformed; “recession-resistant” businesses 2009 industry box office revenue up 10% vs. 2008, setting a new record1 2010 YTD box office revenue up ~3% as of 11/9/10 Digital technology is creating new revenue sources (3D, alternate content)
Slide 20: Box Office Revenue Trends
Box Office Revenue Trends U.S. Box office revenue ($billions) $12 $11 $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 $0 2010E¹ 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 YTD box office revenues are up ~3% year-over-year Largest single
Slide 21: The Promising Future of 3D and Digital
The Promising Future of 3D and Digital Better quality in presentation and content 3D theatres command higher ticket prices than traditional movies New revenue sources for exhibitors Movie studios’ distribution savings are passed on to operators to fund new equipment Nationwide, ~7,600 scre
Slide 22: The Promising Future of 3D and Digital
The Promising Future of 3D and Digital Digital projectors also broaden content offerings (sports, concerts, opera, etc.) without incurring additional cost for landlords or operators with improved pricing power NCM’s Fathom Consumer Events is the largest alternative content player (Regal, AMC & C
Slide 23: Recent Theatre Portfolio Acquisitions
Recent Theatre Portfolio Acquisitions Q4 2009: Rave- National Amusements Deal 15 Theatres, 1.25 mm SF, 231 screens $121.5 million 11.8% cap + escalators & % rent Q2 2010: Cinemark- Private Investor Deal 12 Theatres, 139 acres, 192 screens $124 million 10.8% cap + % rent 22
Slide 24: Charter Schools (10% of EBITDA)
Charter Schools (10% of EBITDA) 25 year master lease Tenant is Imagine Schools, operator of ~73 schools, serving 37,000 students Cross collateralization of 27 schools in 8 states plus Washington, D.C. Credit support via letter of credit (7% of cost) 08/09 09/10 10/11 Attractive Economics:
Slide 25: Metropolitan Ski Areas (5% of EBITDA)
Metropolitan Ski Areas (5% of EBITDA) Investments done through structured mortgages for risk mitigation purposes Substantial land assets - over 6,000 acres across 11 properties Geographic diversity and snowmaking ability mitigate weather risk Metropolitan locations, not bed-based development
Slide 26: Attractive Valuations (Price/2010 FFO)
Attractive Valuations (Price/2010 FFO) All REITs-As of 11/5/10 25
Slide 27: RTAINMENT
RTAINMENT ERTIES TRUST E Pp S) TAR PROPERTIES