Epr Properties · NYSE:EPR
Epr Properties — Corporate Update (November 2019)
20 slides from Epr Properties's corporate update, Nov 25, 2019
Slide 1: Charter School Portfolio Transaction: Activating a Strategic Experiential Migration
CHARTER SCHOOL PORTFOLIO TRANSACTION ACTIVATING A STRATEGIC EXPERIENTIAL MIGRATION NOVEMBER 25, 2019
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: EPR's charter school investing life cycle culminates with $454M liquidity event
CHARTER SCHOOL PORTFOLIO TRANSACTION EPR’s charter school investing life cycle culminates with $454M liquidity event • Sold 47 charter school assets for ~ $454M in gross cash consideration to a fund sponsored by Rosemawr Management • Key stats from charter school investment life cycle: o Ultimately
Slide 4: Action - Strategic Migration
ACTION - STRATEGIC MIGRATION FROM: TO: SEGMENT-FOCUSED EXPERIENTIAL-FOCUSED Annualized NOI(1) Annualized Adjusted Revenue(2) 51% ENTERTAINMENT EXPERIENTIAL 89% PORTFOLIO 45% Theatres 30% RECREATION 23% Eat & Play 7% Ski 18% EDUCATION 11% EDUCATION 6% Attractions 1% OTHER PORTFOLIO 4% Experiential Lo
Slide 5: Rationale for Change Enhances Portfolio Characteristics
RATIONALE FOR CHANGE ENHANCES PORTFOLIO CHARACTERISTICS Strengthens our experiential market leadership Reduces income volatility – increases predictability Simplifies message - increases focus Strengthens overall rent coverage Creates path for greater diversity in experiential properties 5
Slide 6: Why Experiential?
WHY EXPERIENTIAL? Growth of Experience Economy • Anchored by Baby Boomers and Millennials, two largest population segments * o Baby Boomers control ~70% of disposable income o Millennials have strong orientation toward experiential lifestyles Leverages Institutionalized Knowledge • EPR has over 20 y
Slide 7: Demand Drivers: Spending on Experiences Increasing
DEMAND DRIVERS SPENDING ON EXPERIENCES INCREASING* LEISURE SPENDING AS A % OF TOTAL CONSUMPTION LEISURE EXPERIENCE SPENDING $1,000 9.5% $900 9.0% 9.0% $800 $700 8.5% $600 8.0% $500 7.5% $400 (In Billions) (In $300 7.0% $200 6.5% $100 6.0% $0 '90 '94 '98 '02 '06 '10 '14 '18 '90 '92 '94 '96 '98 '00 '0
Slide 8: Market Opportunity: Building the Premier Experiential Real Estate Portfolio
MARKET OPPORTUNITY BUILDING THE PREMIER EXPERIENTIAL REAL ESTATE PORTFOLIO ESTIMATED $100+ BILLION ADDRESSABLE MARKET Deep Market | Property Diversification Experienced Team | Institutional Knowledge TARGET EXPERIENTIAL PROPERTY TYPES 8
Slide 9: Portfolio Overview
PORTFOLIO OVERVIEW $6.6B+ PORTFOLIO(3) Generating Annualized Adjusted Revenue(2) $587M+ 367 locations with over 200 tenants in 43 states & Canada (4) Rent coverage increases to 1.94x from 1.89x PORTFOLIO BY ANNUALIZED ADJUSTED REVENUE(2) Experiential 89% Education 11% 9
Slide 10: Experiential Portfolio
EXPERIENTIAL PORTFOLIO PORTFOLIO HIGHLIGHTS $5.9B INVESTED(3) 89% ANNUALIZED ADJUSTED REVENUE (2) 279 Diversified portfolio which consists of a variety of enduring, PROPERTIES IN SERVICE congregant entertainment, recreation and leisure activities • Location Based Experiences (LBE) - Combines long-li
Slide 11: Education Portfolio
EDUCATION PORTFOLIO PORTFOLIO HIGHLIGHTS $753M INVESTED (3) 11% ANNUALIZED ADJUSTED REVENUE (2) Portfolio of private schools and early childhood education 88 centers that provides additional geographic and operator PROPERTIES IN SERVICE diversity • Private Schools - located in gateway cities, provid
Slide 12: Portfolio Detail
PORTFOLIO DETAIL % ANNUALIZED NUMBER OF ADJUSTED PROPERTY TYPE PROPERTIES OPERATORS REVENUE(2) Theatres(7) 176 18 45% Eat & Play 55 10(6) 23% Ski 12 5 7% Attractions 18 6 6% Experiential Lodging 7 2 4% Gaming 1 1 2% Fitness & Wellness 7 2 1% Cultural 3 3 1% TOTAL EXPERIENTIAL PORTFOLIO 279 47 89% Pr
Slide 13: Capital Redeployment - Guidance
CAPITAL REDEPLOYMENT – GUIDANCE REDEPLOYMENT OF CAPITAL • We expect rapid redeployment into experiential real estate – including casino resorts 2019 UPDATED GUIDANCE MEASURE UPDATED PRIOR Net income available to common $2.35 to $2.39 $2.58 to $2.66 shareholders per diluted common share FFOAA per dil
Slide 14: In Summary
IN SUMMARY Transaction Reduces Earnings Volatility and Improves Rent Coverage • Sale of charter school portfolio removes less predictable pre-payments • Rent coverage improves from 1.89x to 1.94x Enhanced Focus on Experiential Assets • Recognizes consumers’ strong preference for location-based exper
Slide 15: Appendix
APPENDIX 15
Slide 16: Footnotes
FOOTNOTES (1) Annualized GAAP NOI (a non-GAAP financial measure) is as of September 30, 2019. See Supplemental Financial and Operating data for the quarter ended September 30, 2019 on our website (www.eprkc.com) for definition and calculation. (2) Annualized Adjusted Revenue (a non-GAAP financial me
Slide 17: Reconciliation of Annualized Adjusted Revenue to Total Revenue
RECONCILIATION RECONCILIATION OF ANNUALIZED ADJUSTED REVENUE TO TOTAL REVENUE(2) (Dollars in thousands) For the Three Months Ended September 30, 2019 Total Revenue $ 184,862 Total revenue for Public Charter Schools (15,507) Other income (11,464) Pass through revenues (11,059) In-service adjustments(
Slide 18: Reconciliation of Total Investments
RECONCILIATION RECONCILIATION OF TOTAL INVESTMENTS (Dollars in thousands) As of September 30, 2019 Real estate investments, net of accumulated depreciation $ 5,569,310 Add back accumulated depreciation on real estate investments 989,480 Land held for development 28,080 Property under development 31,
Slide 19: Reconciliation of 2019 Guidance to Net Income Available to Common Shareholders
RECONCILIATION RECONCILIATION OF 2019 GUIDANCE TO NET INCOME AVAILABLE TO COMMON SHAREHOLDERS OF EPR PROPERTIES (PER DILUTED SHARE): 2019 CURRENT 2019 PRIOR GUIDANCE GUIDANCE Net income available to common shareholders of EPR Properties $2.35 to $2.39 $2.58 to $2.66 Gain on sale of real estate net o
Slide 20: EPR Properties contact details
EPR Properties 909 Walnut Street, Suite 200 Kansas City, MO 64106 www.eprkc.com 816-472-1700 info@eprkc.com