EPR Properties(EPR) - 2024 Q4 - Annual Results

Financial Performance - Q4 2024 revenue was $177,234,000, a 3.3% increase from$ 171,981,000 in Q4 2023[16] - Net income available to common shareholders decreased to $(14,435,000) in Q4 2024 from$ 39,489,000 in Q4 2023[16] - Adjusted EBITDAre for Q4 2024 was $135,505,000, compared to$ 129,440,000 in Q4 2023, reflecting a 4.0% increase[16] - Total revenue for Q4 2024 was $177,234,000, a slight decrease from$ 180,507,000 in Q3 2024[21] - Net loss for Q4 2024 was $8,395,000, contrasting with a net income of$ 46,650,000 in Q3 2024[21] - Funds from Operations (FFO) available to common shareholders decreased to $84,295,000 in Q4 2024 from$ 101,368,000 in Q3 2024, a drop of approximately 16.8%[23] - Adjusted Funds from Operations (AFFO) available to common shareholders for Q4 2024 was $94,139,000, down from$ 99,309,000 in Q3 2024, representing a decrease of about 5.4%[24] - The diluted FFO per common share for Q4 2024 was $1.10, compared to$ 1.31 in Q3 2024, indicating a decline of 16.0%[23] - The total diluted AFFO available to common shareholders was $98,015,000 in Q4 2024, down from$ 103,185,000 in Q3 2024, reflecting a decrease of approximately 5.1%[24] - The company reported a net loss of $3,966 thousand for the three months ended December 31, 2024[47] Assets and Liabilities - Total assets as of December 31, 2024, were$ 5,616,507,000, down from $5,700,885,000 in 2023[16] - Total assets decreased to$ 5,616,507,000 in Q4 2024 from $5,689,162,000 in Q3 2024[20] - Total liabilities increased slightly to$ 3,293,262,000 in Q4 2024 from $3,285,459,000 in Q3 2024[20] - Cash and cash equivalents decreased to$ 22,062,000 in Q4 2024 from $35,328,000 in Q3 2024[20] - As of December 31, 2024, total consolidated debt amounted to$ 2,860,458,000, an increase from $2,816,095,000 in 2023, reflecting a growth of 1.57%[30] - The company’s total assets as of December 31, 2024, were reported at$ 7,146,711,000, with total unencumbered assets at $7,022,438,000[35] Debt and Leverage - Net debt as of December 31, 2024, was$ 2,857,530,000, compared to $2,763,150,000 in 2023, indicating an increase in leverage[16] - The net debt to total market capitalization ratio was 43% in Q4 2024, up from 41% in Q4 2023[16] - Debt to total assets ratio increased to 51% in Q4 2024 from 49% in Q4 2023[39] - Net debt to total market capitalization ratio rose to 43% in Q4 2024, compared to 41% in Q4 2023[39] - The company has a weighted average interest rate of 4.39% on its total debt, with fixed rate unsecured debt at 4.34% and variable rate unsecured debt at 5.46%[30] - The interest coverage ratio for Q4 2024 was 3.8, down from 4.0 in Q3 2024, indicating a decrease in the company's ability to cover interest expenses[83] Shareholder Returns - Dividends declared on common shares increased to$ 64,752,000 in Q4 2024 from $62,148,000 in Q4 2023[16] - The company aims to enhance shareholder value through predictable growth in Funds from Operations As Adjusted (FFOAA) and dividends per share[9] - Common dividends payable increased to$ 25,831,000 in Q4 2024 from $23,811,000 in Q3 2024[20] - The AFFO payout ratio for Q4 2024 was 70%, an increase from 66% in Q3 2024, suggesting a higher proportion of AFFO is being distributed as dividends[24] - FFO payout ratio increased to 78% in Q4 2024 from 71% in Q4 2023[39] Operational Highlights - The strategic focus includes acquiring or developing a diversified portfolio of experiential real estate venues[10] - The company is assessing new opportunities based on principles such as location quality and tenant success[12] - The company plans to focus on growing the Eat & Play and Attractions segments, while reducing its exposure in Theatres and Early Childhood Education[57] - Total investment spending for the year ended December 31, 2024, was$ 263.92 million, with $129.71 million allocated to Fitness & Wellness and$ 78.03 million to Attractions[51] - The company expects to incur total costs of $196.79 million for build-to-suit projects, with significant spending planned for the first and second quarters of 2025[53] Future Guidance - 2025 guidance for investment spending is projected between$ 200.0 million and $300.0 million[65] - FFO per diluted share is expected to range from$ 4.95 to $5.15, while FFOAA per diluted share is projected between$ 4.94 and $5.14[65] - Net income available to common shareholders is guided between$ 2.84 and $3.04 per diluted share[65] - Other income is anticipated to be between$ 42.0 million and $52.0 million, with other expenses also projected in the same range[65] - The company expects percentage rent to be between$ 18.0 million and $22.0 million[65] Risk Management - The company has identified risks associated with development projects, as noted in its most recent Annual Report, highlighting the importance of risk management in future strategies[55]