Epr Properties · NYSE:EPR

Epr Properties — Entertainment Properties Trust — Investor Presentation (July 2010)

38 slides from Epr Properties's investor presentation, July 2010

  1. Slide 1: Investor Presentation – July 2010

    Draft: 4/19/10 Investor Presentation – July 2010 0

  2. Slide 2: Presenters

    Presenters Years of Industry Name Position Years with EPR Experience David M. Brain President & CEO 12 20+ Gregory K. Silvers Vice President, COO & General Counsel 11 20+ Mark A. Peterson Vice President, CFO & Treasurer 6 20+ 1

  3. Slide 3: 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,

  4. Slide 4: Executive Summary

    Executive Summary  Entertainment Properties Trust (“EPR” or the “Company”) develops, owns, leases and finances properties for consumer-preferred, high-quality businesses  $3.7bn total market capitalization  Largest owner of megaplex theatres in North America  Also owns entertainment retail cente

  5. Slide 5: 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-

  6. Slide 6: Summary of Strengths

    Summary of Strengths  Market dominant assets with strong cash flow coverage  Performance dictated by property attributes and industry strength, not tenant-specific factors Asset Quality  Successful navigation of downturn; recession-resistant asset types  Stable, high occupancy levels; flexible r

  7. Slide 7: Top Performing Equity REIT

    Top Performing Equity REIT Historical Stock Price Performance1 EPR RMZ 600% Current (as of 6/21/2010) 500% Total market cap: $3.7bn 400% Equity market cap: $1.9bn EPR 10-year total return: 627.1%2 217.6% 300% RMZ 200% 142.8% 100% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Total Book C

  8. Slide 8: Company History

    Company History Acquisition timeline – Total book value of investments ($mm) Megaplex theatres, including those in ERCs: 13 21 21 24 24 35 43 55 65 73 77 78 94 94 105 11/18/1997: 12/18/2009: Purchase 6/11/2010: 1998 - 2008: Added 57 megaplex Completes $254mm 15 megaplex theatre Acquisition of 12 the

  9. Slide 9: Portfolio and Industry Overview

    Portfolio and Industry Overview 8

  10. Slide 10: Portfolio Snapshot

    Portfolio Snapshot1 Number of Property type properties EBITDA ($mm)1 % of total % Occupancy Megaplex theatres 96 $40.1 56% 100% ERCs2 9 14.5 21% 93% Charter schools 27 6.6 9% 100% Metropolitan ski areas 11 3.7 5% 100% Vineyards and wineries 19 3.3 5% 89% Schlitterbahn 3 2.9 4% 100% Total 165 $71.1 1

  11. Slide 11: Property Map

    Property Map Geographically diverse portfolio in 33 states, D.C. & Canada - Megaplex Theaters - Wineries - EPR Corporate Office - Ski Properties - Entertainment Retail Center - Development-Water Park/Concord Resort - Public Charter Schools 10

  12. Slide 12: Operating Environment Overview

    Operating Environment Overview  EPR’s tenants have continued to outperform; tenants operate “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 6/14/10  Introduction of digital technology is creating

  13. Slide 13: Top 10 Customers by Revenue

    Top 10 Customers by Revenue Q1’10 Revenue % of Length of Customers Asset Type ($mm)1 total relationship (yrs) 1 American Multi-Cinema, Inc. Megaplex Theatres $29.3 35% 13 2 Rave Motion Pictures Megaplex Theatres 7.3 9 9 3 Imagine Schools, Inc. Charter Schools 6.6 8 5 4 Cinemark Megaplex Theatres 4.4

  14. Slide 14: Box Office Revenue Trends

    Megaplex Theatres ERCs Box Office Revenue Trends Charter Schools Metropolitan Ski Areas U.S. Box office revenue ($billions) Wine $12 Waterpark $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 20

  15. Slide 15: Portfolio Rankings

    Megaplex Theatres ERCs Portfolio Rankings Charter Schools Metropolitan Ski Areas Wine Waterpark  ~1/3 of our Megaplex theatres are #1 in respective metropolitan rankings  ~2/3 of our Megaplex theatres are #1-4 in respective metropolitan rankings  100% in Top Third Nationally  Our Megaplex theatr

  16. Slide 16: Megaplex Theatres (56% of EBITDA)

    Megaplex Theatres Megaplex Theatres (56% of EBITDA1) ERCs Charter Schools Metropolitan Ski Areas Wine  105 megaplex theatres, including 9 theatres in ERCs Waterpark  8.5mm square feet; 100% occupancy  ~1,400 acres of land  99% have 3D projectors; 26 have large format presentation  Avg. of 18.3

  17. Slide 17: Break Even Analysis (in millions)

    Megaplex Theatres ERCs Break Even Analysis (in millions) Charter Schools Metropolitan Ski Areas  EPR’s portfolio could absorb over a 23% revenue decline and still cover rent Wine Waterpark EPR Full COGS Portfolio 1 Variable Variable Only Admission Revenue 573 68% 338 442 Concessions Revenue 250 30%

  18. Slide 18: The Promising Future of 3D and Digital

    Megaplex Theatres ERCs The Promising Future of 3D and Digital Charter Schools Metropolitan Ski Areas Wine Waterpark  Better quality in presentation and content  3D theatres command higher ticket prices than traditional movies  New revenue sources for exhibitors  Movie studios’ distribution savin

  19. Slide 19: ERCs (21% of EBITDA)

    Megaplex Theatres ERCs ERCs (21% of EBITDA) Charter Schools Metropolitan Ski Areas Size mm Wine ERC sq/ft Location Major tenants Occupancy Waterpark New Roc City 446,076 New York Regal Cinemas, Stop & Shop, Modells 79% Kanata Entertainment 460,271 Ottawa AMC, HBC Home Outfitters, Best Buy 98% Centru

  20. Slide 20: Toronto Dundas Square

    % Toronto Dundas Square Panasonic ideas for life ENTERTAINMENT PROPERTIES TRU Sit

  21. Slide 21: Public Charter Schools

    Megaplex Theatres ERCs Public Charter Schools Charter Schools Metropolitan Ski Areas Wine  Public Charter Schools are independent, nonsectarian and tuition free Waterpark  Choice + accountability + freedom  Currently ~5,000 schools nationwide  400-500 added per year; 418 opened in 2009  Multipl

  22. Slide 22: Charter Schools (9% of EBITDA)

    Megaplex Theatres ERCs Charter Schools (9% of EBITDA) Charter Schools Metropolitan Ski Areas  25 year master lease Wine Waterpark  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

  23. Slide 23: Metropolitan Ski Areas

    Megaplex Theatres ERCs Metropolitan Ski Areas Charter Schools Metropolitan Ski Areas Wine  Long track record of success in metropolitan vs. destination resorts Waterpark  Lower revenue volatility  Admissions and concessions business vs. speculative bed-based resort development  General public wi

  24. Slide 24: Metropolitan Ski Areas (5% of EBITDA)

    Metropolitan Ski Areas (5% of EBITDA) Megaplex  Investments done through structured mortgages Theatres ERCs for risk mitigation purposes Charter Schools  Substantial land assets - over 6,000 acres across Metropolitan Ski Areas 11 properties Wine  Geographic diversity and snowmaking ability Waterp

  25. Slide 25: Vineyards and Wineries (5% of EBITDA)

    Vineyards and Wineries (5% of EBITDA) Megaplex Theatres  8 Vineyards and 11 Wineries located in California ERCs and Washington Charter Schools Metropolitan Ski Areas  ~1,145 plantable acres; 2.5mm case capacity Wine Waterpark  Lease Economics:  Initial ~9% caps  ~2-3% escalators/yr  Repurchase

  26. Slide 26: Schlitterbahn Waterparks

    Megaplex Theatres ERCs Schlitterbahn Waterparks Charter Schools Metropolitan Ski Areas Wine Waterpark Assets: Family destination water-parks located in New Braunsfels, TX, South Padre Island, TX and Kansas City, KS 2009 visitors: 1.3 million Operator: Schlitterbahn Waterparks EPR investment: $163.5m

  27. Slide 27: Financial Results and Liquidity

    Financial Results and Liquidity 26

  28. Slide 28: Historical Financials

    Historical Financials Total Revenue Adjusted EBITDA $322.4 $266.4 $286.1 $270.8 $279.6 $242.0 $230.4 $235.7 $224.2 $195.6 $196.0 $161.2 $164.8 $139.5 2005 2006 2007 2008 2009 3/31/2010 3/31/2010 2005 2006 2007 2008 2009 3/31/2010 3/31/2010 TTM TTM PF TTM TTM PF Adjusted Funds From Operations Gross A

  29. Slide 29: Capital Markets Activity

    Capital Markets Activity  Equity Capital Raised  $285mm of net equity issued in 2009 ($294mm gross) • $95mm from Direct Share Purchase Plan • $190mm from November 2009 common share offering  $141mm of net equity issued in 2010 ($148mm gross)  Total Debt at 3/31/10 = $1.3bn  $1.0bn is fixed rate

  30. Slide 30: Funding Strategy

    Funding Strategy Past Future  EPR historically financed its debt via the  Convert secured credit facility to an secured debt markets unsecured credit facility  CMBS financing prior to 2009  Begin to replace secured property debt • Cost-effective with unsecured debt financing • Ease of execution

  31. Slide 31: Financial Philosophy

    Financial Philosophy  Continue to operate our company with investment-grade metrics  Continue to pay conservative dividends and ensure solid cash flow coverage  Maintain staggered lease maturity profile, strong relationships with tenants and manageable debt maturity ladder  Continue to maintain

  32. Slide 32: Credit Strength

    Credit Strength Key Credit Metrics Pro forma 3/31/10A post bond 2007A 2008A 2009A 3/31/10A Pro forma1 transaction Debt / Adjusted EBITDA 5.5x 5.2x 5.1x 5.7x 4.5x 4.6x Debt / Gross Assets 46% 44% 39% 42% 38% 39% Debt + Preferred / Gross Assets 60% 59% 53% 55% 51% 52% Secured Debt / Total Real Estate

  33. Slide 33: Debt Maturity Profile

    Debt Maturity Profile1 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 $0 2010 2011 2012 2013 2014 Thereafter Debt maturity schedule – Post bond transaction ($mm) $800 Consolidat

  34. Slide 34: Ability to Unencumber Significant Assets

    Ability to Unencumber Significant Assets Post Bond Transaction Unencumbered Assets Vineyards and Metropolitan Ski Wineries, $51 Areas, $149 Waterparks, $163 Public Charter Schools, $224 Theatres and ERCs, $894 ~$1.5bn in unencumbered assets, resulting in unencumbered real estate / unsecured debt of

  35. Slide 35: Summary of Strengths

    Summary of Strengths  Market dominant assets with strong cash flow coverage  Performance dictated by property attributes and industry strength, not tenant-specific factors Asset Quality  Successful navigation of downturn; recession-resistant asset types  Stable, high occupancy levels; flexible r

  36. Slide 36: Appendix: Pro Forma Adjustments

    Appendix: Pro Forma Adjustments Balance Sheet Impact: Incremental EBITDA impact: RE Investments Debt Q1 2010 3/31/10 TTM Description Recent Transactions Rave Portfolio – – NA $10.1 15 theatres acquired in December 2009 Charter Schools – – 0.4 4.4 Acquisition of 5 schools in January 2010 Toronto Dund

  37. Slide 37: Summary of Terms: Unsecured Facility

    Summary of Terms: Unsecured Facility Leverage based pricing S&P Rating Moody’s Rating Fitch’s Rating LIBOR Spread Base Rate Spread > BBB- > Baa3 > BBB- 300 bps 2.00% = BB+ = Ba1 = BB+ 325 bps 2.25% < BB < Ba2 < BB 350 bps 2.50%  Applicable interest rate:  If two of the three agencies share a ratin

  38. Slide 38: RTAINMENT

    RTAINMENT ERTIES TRUST E Pp S) TAR PROPERTIES

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