EPR Properties(US:EPR)2025-05-08 13:30Financial Performance - Total revenue for the three months ended March 31, 2025, was $175.0 million, representing a 4.7% increase from $167.2 million in the same period of 2024[121] - Funds From Operations As Adjusted (FFOAA) per diluted share increased by 5.3% to $1.19 for the three months ended March 31, 2025, compared to $1.13 for the same period in 2024[121] - FFO available to common shareholders increased to $92,355,000 in Q1 2025 from $81,426,000 in Q1 2024, representing a growth of 13.5%[154] - Diluted FFO per common share rose to $1.20 in Q1 2025, up from $1.07 in Q1 2024, reflecting a 12.1% increase[155] - AFFO available to common shareholders reached $92,946,000 in Q1 2025, compared to $85,675,000 in Q1 2024, marking an increase of 8.5%[154] - Adjusted EBITDAre for Q1 2025 was $131,991,000, up from $126,348,000 in Q1 2024, indicating a growth of 4.2%[165] - Basic FFO per common share increased to $1.22 in Q1 2025 from $1.08 in Q1 2024, reflecting a growth of 12.9%[155] - Dividends per common share increased to $0.865 in Q1 2025 from $0.835 in Q1 2024, representing a growth of 3.6%[155] Assets and Investments - As of March 31, 2025, total assets were approximately $5.5 billion, with total investments amounting to approximately $6.8 billion[113] - The Experiential investment segment comprised $6.4 billion, or 94%, of total investments as of March 31, 2025[113] - The wholly-owned Experiential portfolio was 99% leased or operated, excluding properties intended for sale, totaling approximately 18.5 million square feet[114] - Total investments as of March 31, 2025, amounted to $6,824,960, a decrease from $6,877,912 as of December 31, 2024, reflecting a reduction of approximately 0.77%[166] - Real estate investments, net of accumulated depreciation, were $4,353,893 as of March 31, 2025, down from $4,435,358 at the end of 2024, indicating a decline of about 1.83%[166] Debt and Financing - Total outstanding debt was $2.8 billion, with 99% being unsecured[135] - The company had $105.0 million outstanding under its $1.0 billion unsecured revolving credit facility, with an interest rate of 5.46% as of March 31, 2025[137] - The company aims to maintain a conservative capital structure, focusing on a net debt to adjusted EBITDAre ratio[150] - Net Debt as of March 31, 2025, was $2,789,020,000, slightly up from $2,781,753,000 in the previous year[165] - The Debt to Total Assets Ratio was 50% in Q1 2025, compared to 49% in Q1 2024, indicating a slight increase in leverage[165] - The Net Debt to Gross Assets Ratio remained stable at 39% for both Q1 2025 and Q1 2024[165] Cash Flow and Operating Activities - Cash and cash equivalents stood at $20.6 million, with restricted cash of $6.4 million as of March 31, 2025[134] - Net cash provided by operating activities was $99.369 million for Q1 2025, slightly down from $99.543 million in Q1 2024[143] Investment Strategy and Future Outlook - Investment spending for the three months ended March 31, 2025, was $37.7 million, a decrease from $85.7 million in the same period of 2024[124] - The company intends to maintain moderate investment spending in the near term due to elevated costs of capital and will be more selective in future investments[120] - The company had 14 development projects with commitments totaling approximately $142.8 million, with $74.2 million expected to be funded in the remainder of 2025[144] - The company intends to be more selective in future investments due to an elevated cost of capital impacting investment capabilities[149] Operating Expenses and Credit Losses - Property operating expenses for Q1 2025 were $15.171 million, an increase of $251,000 from $14.920 million in Q1 2024[131] - The provision for credit losses improved by $3.389 million, moving from a net expense of $2.737 million in Q1 2024 to a benefit of $652,000 in Q1 2025[132] Risk Management - The company is exposed to market risks related to interest rates and foreign currency exchange rates, which it seeks to mitigate through various hedging strategies[168] - The company entered into an interest rate swap agreement on a $25.0 million variable rate bond, capping the interest rate at 2.5325% until September 30, 2026, to mitigate interest rate risk[170] - Six USD-CAD cross-currency swaps were initiated with a total notional value of $170.0 million CAD and $125.0 million USD, locking in an exchange rate of $1.35 CAD per USD for approximately $15.3 million annual CAD cash flows through December 2026[172] - Two additional USD-CAD cross-currency swaps were established with a notional value of $90.0 million CAD and $66.2 million USD, also locking in an exchange rate of $1.35 CAD per USD for approximately $8.1 million annual CAD cash flows through December 2026[173] - Two forward contracts with a fixed notional value of $200.0 million CAD and $142.8 million USD were entered into, with an exchange rate of approximately $1.40 CAD per USD, effective December 19, 2024[174] - A forward contract with a notional value of $90.0 million CAD and $64.3 million USD was also established, with a similar exchange rate of approximately $1.40 CAD per USD, effective December 19, 2024[175]