EPR Properties · NYSE:EPR

EPR Properties — Investor Presentation (September 2009)

51 slides from EPR Properties's investor presentation, September 2009

  1. Slide 1: Investor Presentation September 2009

    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 We are under no obligation to update or remove outdated information other than as required by applicable law or regulation. Investor NAREITPresentation June 2009 September 2009 1

  2. Slide 2: EPR Background and Portfolio

    EPR Background and Portfolio 2

  3. Slide 3: EPR Background

    EPR Background  Formed in 1997; initial assets were megaplex theatres via sale-leasebacks with AMC  Expanded to Entertainment Retail Centers (ERCs) and pre-leased development of megaplex theatres and ERCs  Extended investments to other entertainment, recreational and specialty assets  Anchored b

  4. Slide 4: EPR Five Star Principles

    EPR Five Star Principles Investments evaluated against five core criteria:  Inflection Opportunity: a generational renewal or restructuring in an industry’s properties that creates an opportunity for insightful capital  Enduring Value: investments in real estate devoted to and improving upon long-

  5. Slide 5: Property Map

    Property Map Geographically diverse portfolio in 31 states, D.C. & Canada - Theaters - Wineries - EPR Corporate Office - Ski Properties - Entertainment Retail Center - Development-Water Park/Concord Resort - Public Charter Schools 5

  6. Slide 6: Top Ten Customers by Revenue Q2 2009

    Top Ten Customers by Revenue Q2 2009 Total Revenue Customers Asset Type Amount % 1 American Multi-Cinema, Inc. Retail/Theatres $ 25.4 38% 2 Imagine Schools, Inc. Public Charter Schools 5.0 8% 3 Regal Cinemas, Inc. Retail/Theatres 5.0 8% 4 Peak Resorts, Inc. Metropolitan Ski Areas 3.6 5% 5 Rave Motio

  7. Slide 7: EBITDA By Asset Type Q2 2009

    EBITDA By Asset Type Q2 2009 EBITDA* % Theatres $ 39.8 67% Other Retail at ERC's** 5.3 9% } 76% Public Charter Schools 5.0 8% Vineyards and Wineries 4.0 7% Metropolitan Ski Areas 3.6 6% 57.7 97% Waterpark 1.5 3% Toronto Life Square - - Concord - - $ 59.2 100% *Excludes G&A expense and other income o

  8. Slide 8: Theatres (67% of EBITDA)

    Theatres (67% of EBITDA)  80 megaplex theatres, 6.6M square feet, 100% occupancy, approximately 700 acres of land  Avg. rem. lease term = 13 yrs, Avg. age < 5 yrs  Cross-collateralization of properties within each operator  Strong 1.6x rent coverage for theaters open at least two years  Excelle

  9. Slide 9: Theatre Portfolio Rankings

    Theatre Portfolio Rankings  25% are #1 in respective metropolitan areas  60% are #1-4 in respective metropolitan areas  100% are in Top Quartile Nationally Source: EDI (June 2008) 9

  10. Slide 10: Box Office Revenue

    Box Office Revenue $10 9.42 9.66 9.63 9.17 9.19 9.21 8.84 $9 8.41 $8 7.45 7.66 6.95 $7 6.37 5.91 $6 5.40 5.49 5.15 5.03 5.02 4.87 $5 4.25 4.46 4.80 $4 3.78 $3 $2 $1 $0 Source: MPAA/Box Office Mojo (in billions) Note: 2009 box office up ~ 7% through 8/9/09 10

  11. Slide 11: The Promising Future of Digital

    The Promising Future of Digital  Better quality  Alternative content (sports, opera, etc.) / 3D / IMAX  New revenue sources for exhibitors  Movie studios’ distribution savings are passed on to operators to fund new equipment  EPR’s participation ($0 cost, better product, % rents) 11

  12. Slide 12: Other Retail at ERC's (9% of EBITDA)

    Other Retail at ERC’s (9% of EBITDA)  All adjacent to megaplex theatres  8 ERC’s located in NY, CA, CO and Canada  1.6 M total square feet  87% occupied at June 30, 2009  1 ERC in development (Virginia) 12

  13. Slide 13: Westminster Promenade – Denver, CO

    Westminster Promenade – Denver, CO 13

  14. Slide 14: Public Charter Schools (8% of EBITDA)

    Public Charter Schools (8% of EBITDA)  Independent, nonsectarian and tuition free  Choice  Accountability  Freedom  Reliable revenue streams backed by government payer  Currently 4,000 schools; 300-400 added per year  Clear disconnect between growth, the need for facility funding and the lack

  15. Slide 15: Public Charter Schools

    Public Charter Schools  Tenant is Imagine Schools, operator of ~75 schools  Master lease; Provides for 3% min. escalator  Cross collateralization of 22 schools in 8 states plus DC  Credit support via letter of credit (one yr of rent)  Pipeline provides significant growth opportunity 15

  16. Slide 16: Public Charter School Performance

    Public Charter School Performance Tranche I and II (12 schools, ~$80M invested, coverage ~1.85) 07/08 08/09 Increase Capacity 7,461 7,944 6.5 % Enrollment 6,284 6,943 10.5 % Occupancy % 84% 87% 3.0 % 16

  17. Slide 17: Public Charter School Performance

    Public Charter School Performance Tranche III (10 schools, ~$80M invested) 08/09 Capacity 6,941 Enrollment 5,987 Occupancy % 86% 17

  18. Slide 18: Vineyard and Winery Assets (7% of EBITDA)

    Vineyard and Winery Assets (7% of EBITDA)  Wine is a fast growing market segment  Historically, higher priced wine has much lower volatility vs. lower priced wine  Vineyard property has appreciated at a compound annual rate in excess of 7% over the last 20 years  8 Vineyards and 10 Wineries; ~1,

  19. Slide 19: Metropolitan Ski Areas (6% of EBITDA)

    Metropolitan Ski Areas (6% of EBITDA)  Substantial land assets - over 6,000 acres  Admissions and concessions business vs. speculative bed-based development; Metropolitan vs. destination resorts  Geographic diversity and snowmaking ability mitigate weather risk  EPR’s structure provides for addi

  20. Slide 20: Ski Asset Performance

    Ski Asset Performance 5 yr Avg. 2009 % Change Skier Visits 1,510 1,542 2.1% Revenue $80,598 $84,467 4.8% EBITDAR $16,250 $19,988 23.0% Rent Coverage 1.67 1.80 (in thousands, except rent coverage) Source: Operator financials 20

  21. Slide 21: Schlitterbahn Vacation Village (3% of EBITDA)

    Schlitterbahn Vacation Village (3% of EBITDA) Location: Kansas City, KS (adjacent to NASCAR speedway) Description: Entertainment village anchored by world-class water park that opened 7/09 Total Project Cost: $600M (phased); $225M through 6/09 EPR Commitment: $163.5M @ 7% plus revenue participation;

  22. Slide 22: Schlitterbahn Vacation Village

    Schlitterbahn Vacation Village 22

  23. Slide 23: Toronto Life Square (<1% of EBITDA)

    Toronto Life Square (<1% of EBITDA)  13 level mixed-use complex in center of Toronto’s primary urban retail node  Completed in May 2008 for $330M Canadian; EPR’s last dollar exposure is ~$246M Canadian  354k total sq ft.; 277k entertainment/retail, 77k office  25k of static & digital signage; up

  24. Slide 24: Toronto Life Square

    * Toronto Life Square TORONTO LIFE] ENTERTAINMENT PROPERTIES TRU Sit FIVE STAR PROPERTIES

  25. Slide 25: Concord Resort Development (0% of EBITDA)

    Concord Resort Development (0% of EBITDA) Location: Sullivan County, New York Description: Casino and resort complex including spa hotel, waterpark hotel, convention center, waterpark, two golf courses and retail/residential development Phase I Cost: ~$600M (casino complex) EPR Investment: $133M Deb

  26. Slide 26: Concord Resort Development

    Concord Resort Development Concord Resort – 110 Miles Foxwoods – 135 Miles Pocono Downs – 122 Miles Empire - Yonkers Mt. Airy – 91 Miles Aqueduct Racetrack New York City Atlantic City – 132 Miles 26

  27. Slide 27: Concord Resort Development

    Concord Resort Development 27

  28. Slide 28: Concord Resort Development – cont.

    Concord Resort Development – cont. EPR Investment Status:  No loan loss reserve as collateral value exceeds carrying value based on recent appraisals  Developer has ceased making interest payments  Per GAAP, no accrual income; cash basis only; also applying to $20M of notes due from developer  E

  29. Slide 29: EPR Financial Results

    EPR Financial Results 29

  30. Slide 30: Operating Performance History

    Operating Performance History 2005 2006 2007 2008 Total Revenue $164.8 196.0 235.7 286.1 Net Income – common 57.7 70.4 81.3 101.7 FFO – common 85.0 101.0 113.7 142.6 FFO/share – common 3.33 3.79 4.18 4.57 Div/share – common 2.50 2.75 3.04 3.36 Interest coverage 3.2x 3.3x 3.2x 3.3x FFO pay-out ratio

  31. Slide 31: Financial Performance: Three Months Ended June 30

    Financial Performance Three Months Ended June 30, 2009 2008 $ Change Total Revenue $66.7 $68.8 - $2.1 Net Income – Common 20.2 23.9 - 3.7 FFO – Common 30.1 33.5 - 3.4 FFO/share – Common 0.86 1.08 - .22 (in millions, except per share data) 31

  32. Slide 32: Financial Performance: Six Months Ended June 30

    Financial Performance Six Months Ended June 30, 2009 2008 $ Change Total Revenue $133.4 $134.6 - $1.2 Net Income – Common 37.9 45.4 - 7.5 FFO – Common 59.1 65.3 - 6.2 FFO/share – Common 1.70 2.19 - .49 (in millions, except per share data) 32

  33. Slide 33: Key Drivers-Year Over Year Decline

    Key Drivers-Year Over Year Decline FFO/share Qtr YTD Toronto Life Square mortgage $0.12 $0.23 ($127M Canadian investment at 6/30/09) Concord mortgage $0.13 $0.27 ($133M investment at 6/30/09) Total $0.25 $0.50 33

  34. Slide 34: 2009 Guidance

    2009 Guidance FFO Per Share : $3.40 - $3.60 (Excludes any expenses related to TLS or any change in status in the Concord Project) Dividend Per Share : $2.60 (Dividend pay-out at midpoint = 74%) Cash Investment Spending: Approx. $60M (Excludes any spending related to the resolution of the TLS receive

  35. Slide 35: Balance Sheet Highlights

    Balance Sheet Highlights 2005 2006 2007 2008 Assets $1,414 1,571 2,172 2,634 Asset Growth 17% 11% 38% 21% Debt $715 675 1,081 1,262 Leverage % 51% 43% 50% 48% (Book Basis) (in millions) 35

  36. Slide 36: Debt – June 30, 2009

    Debt – June 30, 2009 Fixed Rate $1,034 (Avg. rate – 5.9%; Avg. rem. term ~5 yrs) Variable Rate 191 ($116 on revolver) Total Debt $1,225 Leverage % 46% (Book Basis) (in millions) 36

  37. Slide 37: Capital Markets and Liquidity Update

    Capital Markets and Liquidity Update 37

  38. Slide 38: Capital Markets Update

    Capital Markets Update  Line of Credit Renewed on 6/30/09  $215M - accordion to $300M  Matures October 2011, with a one year option  Interest at LIBOR + 3.5%; 2.0% LIBOR floor  Fully collateralized 38

  39. Slide 39: Liquidity Update

    Liquidity Update Uses*: Sources: Q3-Q4 Inv. spending guidance $ (13) Unrestricted cash as of 6/30/09 $ 16 Free cash flow** ~3 Q3-Q4 debt maturities 0 Loans on existing vineyard/ Total $ (13) winery assets 14 Total $ 33 Other Sources: Revolver ($215 max – $116 drawn – $8 LCs) $ 91 Unencumbered assets

  40. Slide 40: Debt Maturities – Next Three Years

    Debt Maturities – Next Three Years Year* Amount 2009 $ - 2010 56.3 (Concord) 2011 - $ 56.3 (in millions) * Includes extensions, consolidated basis 40

  41. Slide 41: Summary of Company Highlights

    Summary of Company Highlights  Stable revenue base and strong cash flow coverage  Diversified revenue streams with recession resistant assets  Market dominant assets; geographically diverse portfolio; long average remaining lease term  Conservative balance sheet management  Minimal debt maturit

  42. Slide 42: Entertainment Properties Trust

    ENTERTAINMENT PROPERTIES TRUST FIVE STAR PROPERTIES

  43. Slide 43: Appendix A: AMC and Regal Financial Summaries

    APPENDIX A AMC AND REGAL FINANCIAL SUMMARIES 43

  44. Slide 44: AMC Entertainment Financial Results and Position

    AMC Entertainment, Inc Financial Results AMC Entertainment, Inc Financial Position 52 Weeks 53 Weeks 52 Weeks Ended Ended Ended March 29, April 3, April, 2 (In millions) March 29, 2007 April 3, 2008 April 2, 2009 (In millions) 2007 2008 2009 Revenues Assets Admissions $ 1,576.9 38.6% $ 1,615.6 2.5%

  45. Slide 45: Regal Entertainment Group Financial Results

    Regal Entertainment Group Financial Results Regal Entertainment Group Financial Results - Form 10-Q Year 364 Days 371 Days Quarter Quarter Ended Ended Ended Ended Ended (In millions) 28-Dec-06 27-Dec-07 %Var January 1, 2009 %Var (In thousands) March 27, 2008 April 2, 2009 %Var Revenues Revenues Admi

  46. Slide 46: Appendix B: Theatre Break-Even Analysis

    APPENDIX B THEATRE BREAK-EVEN ANALYSIS 46

  47. Slide 47: Break Even Analysis

    Break Even Analysis (in millions) COGS EPR Full Variable Portfolio* Variable Only Admission Revenue 480 68% 310 382 Concessions Revenue 217 31% 140 172 Other Revenue 14 2% 9 11 Total Revenue 711 100% 459 -36% 565 -21% Film Cost (259) -36% (167) (206) Concessions Cost (28) -4% (18) (22) Gross Margin

  48. Slide 48: Appendix C: Toronto Life Square

    APPENDIX C TORONTO LIFE SQUARE 48

  49. Slide 49: Toronto Life Square

    * Toronto Life Square Signage 25,166 sq. ft. leased to >> FUTURE SHOP ENTERTAINMENT PROPERTIES TRU Sit FEVE SEAR PROPERTIES 49

  50. Slide 50: Toronto Life Square

    Toronto Life Square  Capital structure at 6/30/09 consists of:  $119M Canadian 1st mortgage provided by bank syndicate, due 2/27/09  $127M Canadian 2nd mortgage from EPR, 25% principal payment and all accrued interest due 3/2/09  Remainder is subordinated debt and equity from pension funds, deve

  51. Slide 51: Toronto Life Square – cont.

    Toronto Life Square – cont.  Neither 1st mortgage or 25% payment on 2nd mortgage paid at maturity  In April 2009, EPR and 1st mortgage holder elected to pursue receivership; receiver to sell property  EPR could become the owner if highest bidder and consolidate results thereafter, or settle its m

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