EPR Properties Provides Fourth Quarter COVID-19 Update
08 January 2021 - 8:15AM
Business Wire
EPR Properties (NYSE: EPR) today provided key business updates
for the fourth quarter ended December 31, 2020, including increased
quarterly cash collection levels and the sale of a portfolio of
education properties.
Cash Collections
For the fourth quarter of 2020 the Company collected
approximately 46% of pre-COVID contractual cash revenue. This cash
collection level is consistent with the Company’s estimated cash
collection range previously provided and compares favorably to
previous 2020 quarters as second quarter was originally reported at
24% (now adjusted with additional collections to 28%), and third
quarter was originally reported at 41% (now adjusted with
additional collections to 42%). Additionally, the fourth quarter
cash collections of approximately 46% combined with the debt
pay-down discussed below, achieves the level which allows the
Company to be cash flow positive.
Property Openings
Our properties continue to be subject to state and local
governmental restrictions. As of December 31, 2020, approximately
92% of the Company’s non-theatre properties are open and 58% of
theatre properties are open, excluding normal seasonal
closings.
Capital Recycling
On December 29, 2020, pursuant to a tenant purchase option, the
Company completed the sale of six private schools and four early
childhood education centers for net proceeds totaling approximately
$201 million and expects to recognize a gain on sale of
approximately $40 million. Additionally, during the fourth quarter
of 2020, the Company completed the sale of four experiential
properties and two land parcels for net proceeds totaling
approximately $23 million and expects to recognize a gain on sale
of approximately $10 million. For the fourth quarter, disposition
proceeds totaled approximately $224 million.
The Company used a portion of the disposition proceeds to
pay-down its revolving credit facility by $160 million on December
30, 2020 and expects to pay-down an additional $46 million either
on its private placement notes or its revolving credit facility on
January 19, 2021 in accordance with the Third Amendment to its
Private Placement Note Purchase Agreement.
Liquidity
The Company believes that it remains well positioned to
withstand the impact of the pandemic, with cash on hand of over
$1.0 billion at December 31, 2020, including $590 million
outstanding under its $1.0 billion revolving credit facility.
“While the pandemic continues to create a very challenging
environment, we continue to make progress,” stated Greg Silvers,
President and CEO of EPR Properties. “In addition to seeing
increased cash collections, the education portfolio sale enhances
our liquidity and furthers our strategic migration toward
experiential real estate.”
About EPR Properties
EPR Properties is a leading experiential net lease real estate
investment trust (REIT), specializing in select enduring
experiential properties in the real estate industry. We focus on
real estate venues which create value by facilitating out of home
leisure and recreation experiences where consumers choose to spend
their discretionary time and money. We have nearly $6.5 billion in
total investments across 44 states. We adhere to rigorous
underwriting and investing criteria centered on key industry,
property and tenant level cash flow standards. We believe our
focused approach provides a competitive advantage and the potential
for stable and attractive returns. Further information is available
at www.eprkc.com.
CAUTIONARY STATEMENT CONCERNING
FORWARD-LOOKING STATEMENTS
The financial results in this press release reflect preliminary,
unaudited results, which are not final until the Company’s Annual
Report on Form 10-K is filed. With the exception of historical
information, certain statements contained or incorporated by
reference herein may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended
(the “Securities Act”), and Section 21E of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), such as those
pertaining to the uncertain financial impact of COVID-19, our
capital resources and liquidity, our expected cash flows and
liquidity, continuing waivers of financial covenants related to our
bank credit facilities and private placement notes, the performance
of our customers, including AMC and Regal, our expected cash
collections, expected use of proceeds from dispositions and our
results of operations and financial condition. The estimates
presented herein are based on the Company's current expectations
and, given the current economic uncertainty, there can be no
assurances that the Company will be able to continue to comply with
other applicable covenants under its debt agreements, which could
materially impact actual performance. Forward-looking statements
involve numerous risks and uncertainties, and you should not rely
on them as predictions of actual events. There is no assurance the
events or circumstances reflected in the forward-looking statements
will occur. You can identify forward-looking statements by use of
words such as “will be,” “intend,” “continue,” “believe,” “may,”
“expect,” “hope,” “anticipate,” “goal,” “forecast,” “pipeline,”
“estimates,” “offers,” “plans,” “would” or other similar
expressions or other comparable terms or discussions of strategy,
plans or intentions contained or incorporated by reference herein.
Forward-looking statements necessarily are dependent on
assumptions, data or methods that may be incorrect or imprecise.
These forward-looking statements represent our intentions, plans,
expectations and beliefs and are subject to numerous assumptions,
risks and uncertainties. Many of the factors that will determine
these items are beyond our ability to control or predict. For
further discussion of these factors see “Item 1A. Risk Factors” in
our Quarterly Report on Form 10-Q for the quarter ended March 31,
2020 filed with the Securities and Exchange Commission ("SEC") on
May 11, 2020.
For these statements, we claim the protection of the safe harbor
for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. You are cautioned not to place undue
reliance on our forward-looking statements, which speak only as of
the date hereof or the date of any document incorporated by
reference herein. All subsequent written and oral forward-looking
statements attributable to us or any person acting on our behalf
are expressly qualified in their entirety by the cautionary
statements contained or referred to in this section. Except as
required by law, we do not undertake any obligation to release
publicly any revisions to our forward-looking statements to reflect
events or circumstances after the date hereof.
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version on businesswire.com: https://www.businesswire.com/news/home/20210107005793/en/
EPR Properties Brian Moriarty (816) 472-1700 VIce President -
Corporate Communications brianm@eprkc.com
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