Epr Properties · NYSE:EPR
Epr Properties — Investor Presentation (March 2010)
40 slides from Epr Properties's investor presentation, March 2010
Slide 1: Investor Presentation March 2010
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 We are under no obligation to update or remove outdated information other than as required by applicable law or regulation.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 March 2010 1
Slide 2: EPR Background and Portfolio
EPR Background and Portfolio 2
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
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-
Slide 5: Property Map
Property Map Geographically diverse portfolio in 33 states, D.C. & Canada - Theaters - Wineries - EPR Corporate Office - Ski Properties - Entertainment Retail Center - Development-Water Park/Concord Resort - Public Charter Schools 5
Slide 6: Top Ten Customers by Revenue Q4 2009
Top Ten Customers by Revenue Q4 2009 Total Revenue Customers Asset Type Amount % 1 American Multi-Cinema, Inc. Retail/Theatres $ 26.5 38% 2 Imagine Schools, Inc. Public Charter Schools 5.1 7% 3 Peak Resorts, Inc. Metropolitan Ski Areas 3.7 5% 4 Regal Cinemas, Inc. Retail/Theatres 3.6 5% 5 Rave Revie
Slide 7: Adjusted EBITDA By Asset Type Q4 2009
Adjusted EBITDA By Asset Type Q4 2009 Adjusted EBITDA* % Theatres $ 39.1 64% Other Retail at ERC's** 7.2 12% } 76% Public Charter Schools 5.2 8% Vineyards and Wineries 3.0 5% Metropolitan Ski Areas 3.7 6% 58.2 95% Waterpark 2.8 5% Toronto Life Square - - Concord - - $ 61.0 100% *Excludes non-cash ch
Slide 8: Theatres (64% of EBITDA)
Theatres (64% of EBITDA) 95 megaplex theatres, 7.8M square feet, 100% occupancy, approximately 1,000 acres of land Avg. rem. lease term = 12 yrs Cross-collateralization of properties within each operator Strong 1.6x rent coverage for theaters Excellent growth opportunity; acquired 15 addit
Slide 9: Theatre Portfolio Rankings
Theatre Portfolio Rankings 22% are #1 in respective metropolitan areas 60% are #1-4 in respective metropolitan areas 100% are in Top Quartile Nationally Source: EDI (June 2009) 9
Slide 10: Box Office Revenue
$0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 $11 19 8 19 6 87 19 88 19 89 19 9 19 0 9 19 1 92 19 93 19 94 19 9 19 5 96 19 97 10 19 Source: MPAA/Box Office Mojo (in billions) 98 19 9 20 9 Box Office Revenue 00 20 01 20 02 20 0 20 3 0 20 4 05 20 06 20 07 20 0 20 8 09
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
Slide 12: Other Retail at ERC's (12% of EBITDA)
Other Retail at ERC’s (12% of EBITDA) All adjacent to megaplex theatres 9 ERC’s located in NY, CA, CO, VA and Canada 1.7 M total square feet 87% occupied at 12/31/09 (92% excluding White Plains) 12
Slide 13: Westminster Promenade – Denver, CO
Westminster Promenade – Denver, CO 13
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
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 27 schools in 8 states plus DC Credit support via letter of credit Pipeline provides significant growth opportunity; acquired 5 of the schools f
Slide 16: Public Charter School Performance
Public Charter School Performance (22* schools, ~$160M* invested, coverage ~1.8) 08/09 09/10 Capacity 14,885 14,815 Enrollment 12,930 12,671 Enrollment % 87% 86% * An additional 5 schools were acquired for $44M on 1/21/10 16
Slide 17: Public Charter School – Rosefield, AZ
Public Charter School – Rosefield, AZ 17
Slide 18: Vineyard and Winery Assets (5% of EBITDA)
Vineyard and Winery Assets (5% of EBITDA) 8 Vineyards and 10 Wineries; ~1,145 plantable acres located in California and Washington Vineyard and winery portfolio presents challenges; will look for existing portfolio to stabilize prior to seeking new investments Volatility in market has increase
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
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
Slide 21: Schlitterbahn Vacation Village (5% of EBITDA)
Schlitterbahn Vacation Village (5% 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;
Slide 22: Schlitterbahn Vacation Village
Schlitterbahn Vacation Village 22
Slide 23: Toronto Dundas Square Project (<1% of EBITDA)
Toronto Dundas Square Project(<1% of EBITDA) 13 level mixed-use complex in center of Toronto’s primary urban retail node completed in May 2008 354k total sq ft.; 277k entertainment/retail, 77k office 25k of static & digital signage; upside potential Retail/office approx. 90% leased at 12/31/
Slide 24: Toronto Dundas Square Project
Toronto Dundas Square Project 24
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
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
Slide 27: 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 EPR’s projections assume no cash payments 27
Slide 28: EPR Financial Results
EPR Financial Results 28
Slide 29: 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 rat
Slide 30: Financial Performance
Financial Performance Year Ended December 31, 2009 2008 $ Change Total Revenue $270.8 $286.1 - $15.3 Net Income -22.1 101.7 - 123.8 FFO – Common 4.9 150.4 -145.5 FFO/share – Common 0.13 4.54 -4.41 (in millions, except per share data) 30
Slide 31: FFO Reconciliation
FFO Reconciliation 4th Quarter 2009 Amount Per Share Per Share Provision for loan losses $ (5.2) $ (0.13) $ (1.96) Impairment charge-White Plains - - (0.99) Impairment charge-Vineyard and Winery Properties (6.4) (0.16) (0.18) Transaction costs (3.2) (0.08) (0.09) Total $ (14.8) $ (0.37) $ (3.22) FFO
Slide 32: Key Ratios for Q4 2009
Key Ratios for Q4 2009 Interest coverage 3.1x Fixed charge coverage 2.2x Debt service coverage 2.3x AFFO payout 82% Debt to adjusted EBITDA 5.1x Book leverage 43% 32
Slide 33: Balance Sheet Highlights
Balance Sheet Highlights 2006 2007 2008 2009 Assets $1,571 2,172 2,634 2,681 Asset Growth 11% 38% 21% 2% Debt $675 1,081 1,262 1,141 Leverage % 43% 50% 48% 43% (Book Basis) (in millions) 33
Slide 34: Capital Markets and Liquidity Update
Capital Markets and Liquidity Update 34
Slide 35: Capital Markets Update
Capital Markets Update Line of Credit amended and restated in June 2009; matures in 2011 with one year extension available to 2012 Equity Capital Raised $285M of equity issued in 2009 • $95M from Direct Share Purchase Plan • $190M from November 2009 common share offering 35
Slide 36: Capital Markets Update
Capital Markets Update Total Debt at 12/31/09 = $1.1B $1.0B is fixed rate, avg. = 5.9% $35M on revolver, $178M available Unrestricted cash = $23M Reduced book leverage to 43% at 12/31/09 Leverage is 39% on an undepreciated book basis 36
Slide 37: 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 Manageable debt matu
Slide 38: Entertainment Properties Trust
ENTERTAINMENT PROPERTIES TRUST FIVE STAR PROPERTIES
Slide 39: Appendix A: Theatre Break-Even Analysis
APPENDIX A THEATRE BREAK-EVEN ANALYSIS 39
Slide 40: 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