Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 02, 2017 | |
Entity Information [Line Items] | ||
Entity Registrant Name | EPR PROPERTIES | |
Entity Central Index Key | 1,045,450 | |
Trading Symbol | EPR | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 73,661,866 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Rental properties, net of accumulated depreciation of $676,364 and $635,535 at June 30, 2017 and December 31, 2016, respectively | $ 4,288,885 | $ 3,595,762 |
Land held for development | 33,672 | 22,530 |
Property under development | 271,692 | 297,110 |
Mortgage notes and related accrued interest receivable | 941,599 | 613,978 |
Investment in a direct financing lease, net | 93,307 | 102,698 |
Investment in joint ventures | 5,581 | 5,972 |
Cash and cash equivalents | 70,872 | 19,335 |
Restricted cash | 24,255 | 9,744 |
Accounts receivable, net | 106,480 | 98,939 |
Other assets | 102,543 | 98,954 |
Total assets | 5,938,886 | 4,865,022 |
Liabilities: | ||
Accounts payable and accrued liabilities | 142,526 | 119,758 |
Common dividends payable | 25,044 | 20,367 |
Preferred dividends payable | 5,952 | 5,951 |
Unearned rents and interest | 71,098 | 47,420 |
Debt | 2,792,920 | 2,485,625 |
Total liabilities | 3,037,540 | 2,679,121 |
Equity: | ||
Common Shares, $.01 par value; 100,000,000 shares authorized; and 76,393,409 and 66,263,487 shares issued at June 30, 2017 and December 31, 2016, respectively | 764 | 663 |
Preferred shares, $.01 par value; 25,000,000 shares authorized: | ||
Additional paid-in-capital | 3,416,986 | 2,677,046 |
Treasury shares at cost: 2,732,653 and 2,616,406 common shares at June 30, 2017 and December 31, 2016, respectively | (121,533) | (113,172) |
Accumulated other comprehensive income | 9,698 | 7,734 |
Distributions in excess of net income | (404,708) | (386,509) |
Total equity | 2,901,346 | 2,185,901 |
Total liabilities and equity | 5,938,886 | 4,865,022 |
Series C Preferred Shares [Member] | ||
Preferred shares, $.01 par value; 25,000,000 shares authorized: | ||
Preferred shares | 54 | 54 |
Series E Preferred Shares [Member] | ||
Preferred shares, $.01 par value; 25,000,000 shares authorized: | ||
Preferred shares | 35 | 35 |
Series F Preferred Stock [Member] | ||
Preferred shares, $.01 par value; 25,000,000 shares authorized: | ||
Preferred shares | $ 50 | $ 50 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Rental properties, accumulated depreciation | $ 676,364,000 | $ 635,535,000 |
Common Shares, par value | $ 0.01 | $ 0.01 |
Common Shares, shares authorized | 100,000,000 | 100,000,000 |
Common Shares, shares issued | 76,393,409 | 66,263,487 |
Preferred Shares, par value | $ 0.01 | $ 0.01 |
Preferred Shares, shares authorized | 25,000,000 | 25,000,000 |
Treasury Shares, common shares | 2,732,653 | 2,616,406 |
Series C Preferred Shares [Member] | ||
Preferred Shares, shares issued | 5,399,050 | 5,399,050 |
Preferred Shares, liquidation preference | $ 134,976,250 | $ 134,976,250 |
Series E Preferred Shares [Member] | ||
Preferred Shares, shares issued | 3,449,865 | 3,450,000 |
Preferred Shares, liquidation preference | $ 86,246,625 | $ 86,250,000 |
Series F Preferred Stock [Member] | ||
Preferred Shares, shares issued | 5,000,000 | 5,000,000 |
Preferred Shares, liquidation preference | $ 125,000,000 | $ 125,000,000 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Rental revenue | $ 119,469 | $ 96,055 | $ 226,506 | $ 189,833 |
Tenant reimbursements | 3,941 | 3,891 | 7,690 | 7,756 |
Other income | 1,304 | 2,126 | 1,996 | 3,336 |
Mortgage and other financing income | 23,068 | 15,961 | 40,702 | 35,876 |
Total revenue | 147,782 | 118,033 | 276,894 | 236,801 |
Property operating expense | 6,072 | 5,580 | 12,422 | 11,061 |
Other expense | 0 | 0 | 0 | 5 |
General and administrative expense | 10,660 | 9,000 | 21,717 | 18,218 |
Costs associated with loan refinancing or payoff | 9 | 339 | 14 | 891 |
Gain on Extinguishment of Debt | (977) | 0 | (977) | 0 |
Interest expense, net | 32,967 | 22,756 | 63,659 | 46,045 |
Transaction costs | 218 | 1,490 | 275 | 1,934 |
Impairment charges | 10,195 | 0 | 10,195 | 0 |
Depreciation and amortization | 33,148 | 25,666 | 61,225 | 51,621 |
Income before equity in income from joint ventures and other items | 55,490 | 53,202 | 108,364 | 107,026 |
Equity in income from joint ventures | 59 | 86 | 51 | 298 |
Gain on sale of real estate | 25,461 | 2,270 | 27,465 | 2,270 |
Income before income taxes | 81,010 | 55,558 | 135,880 | 109,594 |
Income tax expense | (475) | (423) | (1,429) | (279) |
Net income | 80,535 | 55,135 | 134,451 | 109,315 |
Preferred dividend requirements | (5,952) | (5,952) | (11,904) | (11,904) |
Net income available to common shareholders of EPR Properties | $ 74,583 | $ 49,183 | $ 122,547 | $ 97,411 |
Basic earnings per share data: | ||||
Net income available to common shareholders (in dollars per share) | $ 1.02 | $ 0.77 | $ 1.79 | $ 1.54 |
Diluted earnings per share data: | ||||
Net income available to common shareholders (in dollars per share) | $ 1.02 | $ 0.77 | $ 1.78 | $ 1.54 |
Shares used for computation (in thousands): | ||||
Basic (in shares) | 73,159 | 63,592 | 68,621 | 63,128 |
Diluted (in shares) | 73,225 | 63,678 | 68,689 | 63,213 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net income | $ 80,535 | $ 55,135 | $ 134,451 | $ 109,315 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 4,548 | 921 | 6,222 | 12,142 |
Change in net unrealized loss on derivatives | (3,456) | (1,144) | (4,258) | (14,279) |
Comprehensive income | $ 81,627 | $ 54,912 | $ 136,415 | $ 107,178 |
Consolidated Statement Of Chang
Consolidated Statement Of Changes In Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Treasury shares [Member] | Accumulated other comprehensive income (loss) [Member] | Distributions in excess of net income [Member] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Total equity | $ 2,185,901 | $ 663 | $ 139 | $ 2,677,046 | $ (113,172) | $ 7,734 | $ (386,509) |
Balance (in shares) at Dec. 31, 2016 | 66,263,487 | 13,849,050 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other Changes During Period Shares | 19,030 | ||||||
Issuance of nonvested shares, net | 295,754 | ||||||
Issuance of nonvested shares, net | (5,498) | $ (3) | (5,585) | 90 | |||
Purchase of common shares for vesting | 6,729 | 6,729 | |||||
Amortization of nonvested shares | (6,600) | (6,600) | |||||
Share option expense | 361 | 361 | |||||
Foreign currency translation adjustment | 6,222 | 6,222 | |||||
Change in unrealized gain/loss on derivatives | (4,258) | (4,258) | |||||
Net income | 134,451 | 134,451 | |||||
Issuances of common shares (in shares) | 935,638 | ||||||
Issuances of common shares | 68,477 | $ 9 | 68,468 | ||||
Stock Issued During Period, Shares, Acquisitions | 8,851,264 | ||||||
Stock Issued During Period, Value, Acquisitions | $ 657,473 | $ 89 | 657,384 | ||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 61 | ||||||
Stock Redeemed or Called During Period, Shares | (135) | ||||||
Stock option exercises, net (in shares) | 28,175 | 28,175 | |||||
Stock option exercises, net | $ 0 | $ 0 | (1,542) | (1,542) | |||
Dividends to common and preferred shareholders | (152,650) | (152,650) | |||||
Balance (in shares) at Jun. 30, 2017 | 76,393,409 | 13,848,915 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Total equity | $ 2,901,346 | $ 764 | $ 139 | $ 3,416,986 | $ (121,533) | $ 9,698 | $ (404,708) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Net Income (Loss) Available to Common Stockholders, Diluted | $ 122,547 | $ 97,411 |
Operating activities: | ||
Net income | 134,451 | 109,315 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Gain (Loss) on Extinguishment of Debt | (977) | 0 |
Asset Impairment Charges | 10,195 | 0 |
Gain on sale of real estate | (27,465) | (2,270) |
Gain on insurance recovery | (606) | (2,012) |
Deferred income tax expense (benefit) | 684 | (620) |
Costs associated with loan refinancing or payoff | 14 | 891 |
Equity in income from joint ventures | (51) | (298) |
Distributions from joint ventures | 442 | 511 |
Depreciation and amortization | 61,225 | 51,621 |
Amortization of deferred financing costs | 2,981 | 2,335 |
Amortization of above and below market leases, net and tenant improvements | 14 | 96 |
Share-based compensation expense to management and trustees | 6,961 | 5,504 |
Increase in restricted cash | (1,714) | (1,665) |
Decrease in mortgage notes accrued interest receivable | 1,915 | 728 |
Decrease (increase) in accounts receivable, net | 3,506 | (4,327) |
Increase in direct financing lease receivable | (804) | (1,736) |
Increase in other assets | (2,195) | (4,745) |
Increase in accounts payable and accrued liabilities | (12,280) | (931) |
Increase in unearned rents and interest | 3,974 | 135 |
Net cash provided by operating activities | 180,270 | 152,532 |
Investing activities: | ||
Acquisition of and investments in rental properties and other assets | 197,097 | 138,788 |
Proceeds from sale of real estate | 130,726 | 13,129 |
Investment in mortgage notes receivable | (101,721) | (65,508) |
Proceeds from mortgage note receivable paydown | 15,610 | 63,685 |
Investment in promissory notes receivable | 1,387 | 0 |
Proceeds from promissory note receivable paydown | 1,599 | 0 |
Proceeds from sale of infrastructure related to issuance of revenue bonds | 0 | 43,462 |
Proceeds from insurance recovery | 0 | 2,211 |
Proceeds from Sale of Lease Receivables | 0 | 825 |
Additions to properties under development | (196,354) | (187,216) |
Net cash used by investing activities | (348,624) | (268,200) |
Financing activities: | ||
Proceeds from long-term debt facilities | 915,000 | 318,000 |
Principal payments on long-term debt | (601,962) | (203,116) |
Deferred financing fees paid | (7,042) | (169) |
Costs associated with loan refinancing or payoff (cash portion) | (6) | (472) |
Net proceeds from issuance of common shares | 68,352 | 142,279 |
Impact of stock option exercises, net | 0 | (717) |
Purchase of common shares for treasury | (6,729) | (4,208) |
Dividends paid to shareholders | (147,845) | (131,701) |
Net cash provided by financing activities | 219,768 | 119,896 |
Effect of exchange rate changes on cash | 123 | (49) |
Net increase in cash and cash equivalents | 51,537 | 4,179 |
Cash and cash equivalents at beginning of the year | 19,335 | 4,283 |
Cash and cash equivalents at end of the year | 70,872 | 8,462 |
Supplemental schedule of non-cash activity: | ||
Transfer of property under development to rental property | 206,115 | 224,057 |
Issuance of nonvested shares and restricted share units at fair value, including nonvested shares issued for payment of bonuses | 23,983 | 19,626 |
Stock Issued During Period, Value, Acquisitions | 657,473 | |
Noncash or Part Noncash Acquisition, Net Nonmonetary Assets Acquired (Liabilities Assumed) | 12,083 | 0 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the year for interest | 65,623 | 48,608 |
Cash paid during the period for income taxes | 654 | 1,116 |
Interest cost capitalized | 5,340 | 5,051 |
Decrease (increase) in accrued capital expenditures | 9,347 | (5,598) |
Additional Paid-in Capital [Member] | ||
Supplemental schedule of non-cash activity: | ||
Stock Issued During Period, Value, Acquisitions | $ 657,384 | $ 0 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2017 | |
Organization [Abstract] | |
Organization | Organization Description of Business EPR Properties (the Company) is a specialty real estate investment trust (REIT) organized on August 29, 1997 in Maryland. The Company develops, owns, leases and finances properties in select market segments primarily related to Entertainment, Education and Recreation. The Company’s properties are located in the United States and Canada. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies and Recently Issued Accounting Standards Basis of Presentation The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. In addition, operating results for the six month period ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The Company consolidates certain entities when it is deemed to be the primary beneficiary in a variable interest entity (VIE) in which it has a controlling financial interest in accordance with the consolidation guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC). The consolidated balance sheet as of December 31, 2016 has been derived from the audited consolidated balance sheet at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 filed with the Securities and Exchange Commission (SEC) on March 1, 2017. Operating Segments For financial reporting purposes, the Company groups its investments into four reportable operating segments: Entertainment, Education, Recreation and Other. See Note 14 for financial information related to these operating segments. Rental Properties Rental properties are carried at cost less accumulated depreciation. Costs incurred for the acquisition and development of the properties are capitalized. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which generally are estimated to be 30 to 40 years for buildings and 3 to 25 years for furniture, fixtures and equipment. Tenant improvements, including allowances, are depreciated over the shorter of the base term of the lease or the estimated useful life. Expenditures for ordinary maintenance and repairs are charged to operations in the period incurred. Significant renovations and improvements that improve or extend the useful life of the asset are capitalized and depreciated over their estimated useful life. Management reviews a property for impairment whenever events or changes in circumstances indicate that the carrying value of a property may not be recoverable. The review of recoverability is based on an estimate of undiscounted future cash flows expected to result from its use and eventual disposition. If impairment exists due to the inability to recover the carrying value of the property, an impairment loss is recorded to the extent that the carrying value of the property exceeds its estimated fair value. The Company evaluates the held-for-sale classification of its real estate as of the end of each quarter. Assets that are classified as held for sale are recorded at the lower of their carrying amount or fair value less costs to sell. Assets are generally classified as held for sale once management has initiated an active program to market them for sale and it is probable the assets will be sold within one year. On occasion, the Company will receive unsolicited offers from third parties to buy individual Company properties. Under these circumstances, the Company will classify the properties as held for sale when a sales contract is executed with no contingencies and the prospective buyer has funds at risk to ensure performance. Accounting for Acquisitions Upon acquisition of real estate properties, the Company evaluates the acquisition to determine if it will be accounted for as business combination or an asset acquisition. In January 2017, the FASB issued Accounting Standards Update (ASU) No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . The update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether acquisitions should be accounted for as business combinations or asset acquisitions. The standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those fiscal years, with early application of the guidance permitted. The Company has elected to early adopt ASU No. 2017-01 as of January 1, 2017. As a result, the Company expects that fewer of its real estate acquisitions will be accounted for as business combinations. Costs incurred for asset acquisitions and development properties, including transaction costs, are capitalized. For asset acquisitions, the Company allocates the purchase price and other related costs incurred to the real estate assets acquired based on recent independent appraisals or methods similar to those used by independent appraisers and management judgment. Acquisition-related costs in connection with business combinations are expensed as incurred. Costs related to such transactions, as well as costs associated with terminated transactions, are included in the accompanying consolidated statements of income as transaction costs. Deferred Financing Costs Deferred financing costs are amortized over the terms of the related debt obligations or mortgage note receivable as applicable. Deferred financing costs of $34.1 million and $29.3 million as of June 30, 2017 and December 31, 2016, respectively, are shown as a reduction of debt. The deferred financing costs related to the unsecured revolving credit facility are included in other assets. Allowance for Doubtful Accounts Accounts receivable is reduced by an allowance for amounts where collection is not probable. The Company’s accounts receivable balance is comprised primarily of rents and operating cost recoveries due from tenants as well as accrued rental rate increases to be received over the life of the existing leases. The Company regularly evaluates the adequacy of its allowance for doubtful accounts. The evaluation primarily consists of reviewing past due account balances and considering such factors as the credit quality of the Company’s tenants, historical trends of the tenant and/or other debtor, current economic conditions and changes in customer payment terms. Additionally, with respect to tenants in bankruptcy, the Company estimates the expected recovery through bankruptcy claims and increases the allowance for amounts deemed uncollectible. These estimates have a direct impact on the Company's net income. Revenue Recognition Rents that are fixed and determinable are recognized on a straight-line basis over the minimum term of the leases. Base rent escalation on leases that are dependent upon increases in the Consumer Price Index (CPI) is recognized when known. In addition, most of the Company's tenants are subject to additional rents if gross revenues of the properties exceed certain thresholds defined in the lease agreements (percentage rents). Percentage rents as well as participating interest for those mortgage agreements that contain similar such clauses are recognized at the time when specific triggering events occur as provided by the lease or mortgage agreements. Rental revenue included percentage rents of $2.5 million and $1.0 million for the six months ended June 30, 2017 and 2016 , respectively. For the six months ended June 30, 2016 , mortgage and other financing income included a $3.6 million prepayment fee related to a mortgage note that was paid fully in advance of its maturity date. Direct financing lease income is recognized on the effective interest method to produce a level yield on funds not yet recovered. Estimated unguaranteed residual values at the date of lease inception represent management's initial estimates of fair value of the leased assets at the expiration of the lease, not to exceed original cost. Significant assumptions used in estimating residual values include estimated net cash flows over the remaining lease term and expected future real estate values. The Company evaluates on an annual basis (or more frequently, if necessary) the collectability of its direct financing lease receivable and unguaranteed residual value to determine whether they are impaired. A direct financing lease receivable is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the existing contractual terms. When a direct financing lease receivable is considered to be impaired, the amount of loss is calculated by comparing the recorded investment to the value determined by discounting the expected future cash flows at the direct financing lease receivable's effective interest rate or to the fair value of the underlying collateral, less costs to sell, if such receivable is collateralized. Mortgage Notes and Other Notes Receivable Mortgage notes and other notes receivable, including related accrued interest receivable, consist of loans originated by the Company and the related accrued and unpaid interest income as of the balance sheet date. Mortgage notes and other notes receivable are initially recorded at the amount advanced to the borrower and the Company defers certain loan origination and commitment fees, net of certain origination costs, and amortizes them over the term of the related loan. Interest income on performing loans is accrued as earned. The Company evaluates the collectability of both interest and principal of each of its loans to determine whether it is impaired. A loan is considered to be impaired when, based on current information and events, the Company determines that it is probable that it will be unable to collect all amounts due according to the existing contractual terms. An insignificant delay or shortfall in amounts of payments does not necessarily result in the loan being identified as impaired. When a loan is considered to be impaired, the amount of loss, if any, is calculated by comparing the recorded investment to the value determined by discounting the expected future cash flows at the loan’s effective interest rate or to the fair value of the Company’s interest in the underlying collateral, less costs to sell, if the loan is collateral dependent. For impaired loans, interest income is recognized on a cash basis, unless the Company determines based on the loan to estimated fair value ratio the loan should be on the cost recovery method, and any cash payments received would then be reflected as a reduction of principal. Interest income recognition is recommenced if and when the impaired loan becomes contractually current and performance is demonstrated to be resumed. Concentrations of Risk On December 21, 2016, American Multi-Cinema, Inc. (AMC) announced that it closed its acquisition of Carmike Cinemas Inc. (Carmike). Including the effects of this acquisition, AMC was the lessee of a substantial portion ( 35% ) of the megaplex theatre rental properties held by the Company at June 30, 2017 . For the six months ended June 30, 2017 , approximately $57.6 million or 20.8% of the Company's total revenues were derived from rental payments by AMC. For the six months ended June 30, 2016 , approximately $43.6 million or 18.4% of the Company's total revenues were derived from rental payments by AMC and approximately $9.9 million or 4.2% of the Company's total revenues were derived from rental payments by Carmike. These rental payments are from AMC under the leases, or from its parent, AMC Entertainment, Inc. (AMCE), as the guarantor of AMC’s obligations under the leases. AMCE is wholly owned by AMC Entertainment Holdings, Inc. (AMCEH). AMCEH is a publicly held company (NYSE: AMC) and its consolidated financial information is publicly available at www.sec.gov. Share-Based Compensation Share-based compensation to employees of the Company is granted pursuant to the Company's Annual Incentive Program and Long-Term Incentive Plan and share-based compensation to non-employee Trustees of the Company is granted pursuant to the Company's Trustee compensation program. Prior to May 12, 2016, share-based compensation granted to employees and non-employee Trustees were issued under the 2007 Equity Incentive Plan. The 2016 Equity Incentive Plan was approved by shareholders at the May 11, 2016 annual shareholder meeting and this plan replaced the 2007 Equity Incentive Plan. Accordingly, all share-based compensation granted on or after May 12, 2016 has been issued under the 2016 Equity Incentive Plan. Share-based compensation expense consists of share option expense and amortization of nonvested share grants issued to employees, and amortization of share units issued to non-employee Trustees for payment of their annual retainers. Share-based compensation included in general and administrative expense in the accompanying consolidated statements of income totaled $7.0 million and $5.5 million for the six months ended June 30, 2017 and 2016 , respectively. Share Options Share options are granted to employees pursuant to the Long-Term Incentive Plan. The fair value of share options granted is estimated at the date of grant using the Black-Scholes option pricing model. Share options granted to employees vest over a period of four years and share option expense for these options is recognized on a straight-line basis over the vesting period. Expense recognized related to share options and included in general and administrative expense in the accompanying consolidated statements of income was $361 thousand and $460 thousand for the six months ended June 30, 2017 and 2016 , respectively. Nonvested Shares Issued to Employees The Company grants nonvested shares to employees pursuant to both the Annual Incentive Program and the Long-Term Incentive Plan. The Company amortizes the expense related to the nonvested shares awarded to employees under the Long-Term Incentive Plan and the premium awarded under the nonvested share alternative of the Annual Incentive Program on a straight-line basis over the future vesting period ( three or four years). Expense recognized related to nonvested shares and included in general and administrative expense in the accompanying consolidated statements of income was $6.0 million and $4.5 million for the six months ended June 30, 2017 and 2016 , respectively. Restricted Share Units Issued to Non-Employee Trustees The Company issues restricted share units to non-employee Trustees for payment of their annual retainers under the Company's Trustee compensation program. The fair value of the share units granted was based on the share price at the date of grant. The share units vest upon the earlier of the day preceding the next annual meeting of shareholders or a change of control. The settlement date for the shares is selected by the non-employee Trustee, and ranges from one year from the grant date to upon termination of service. This expense is amortized by the Company on a straight-line basis over the year of service by the non-employee Trustees. Total expense recognized related to shares issued to non-employee Trustees was $599 thousand and $533 thousand for the six months ended June 30, 2017 and 2016 , respectively. Derivative Instruments The Company has acquired certain derivative instruments to reduce exposure to fluctuations in foreign currency exchange rates and variable interest rates. The Company has established policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. These derivatives consist of foreign currency forward contracts, cross-currency swaps and interest rate swaps. The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company's policy is to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Impact of Recently Issued Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In April 2015, the FASB voted for a one-year deferral of the effective date of the new revenue recognition standard which was approved in July 2015. In February 2017, the FASB issued ASU No. 2017-05, Other Income: Gains and Losses from the Derecognition of Nonfinancial Assets . ASU No. 2017-05 provides guidance on how entities recognize sales, including partial sales, of nonfinancial assets (and in-substance nonfinancial assets) to noncustomers. ASU No. 2017-05 requires the seller to recognize a full gain or loss in a partial sale of nonfinancial assets, to the extent control is not retained. Any noncontrolling interest retained by the seller would, accordingly, be measured at fair value. Both ASU No. 2014-09 and 2017-05 will become effective for the Company beginning with the first quarter 2018. The standards permit the use of either the full retrospective method or the modified retrospective method. The Company anticipates it will use the modified retrospective method for transition under both standards, in which case the cumulative effect of applying the standards, if any, would be recognized at the date of initial application. ASU No. 2014-09 does not apply to revenue recognition for lease contracts or mortgage and other financing income. For the six months ended June 30, 2017, 84.6% of the Company’s revenue is recognized pursuant to lease contracts and 14.7% of revenue is related to mortgage and other financing income. Based on the Company’s review of its revenue streams, the Company has identified sales of real estate as being in scope for this new standard for the first quarter of 2018. The Company does not anticipate a significant change to the timing of revenue upon adoption of this new revenue standard as rental properties have primarily been disposed of in all cash transactions with no contingencies and no future involvement in the operations . In February 2016, the FASB issued ASU No. 2016-02, Leases, which amends existing accounting standards for lease accounting and is intended to improve financial reporting related to lease transactions. The ASU will require lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Lessor accounting will remain largely unchanged from current U.S. GAAP. However, ASU No. 2016-02 is expected to impact the Company’s consolidated financial statements as the Company has certain operating land leases and other arrangements for which it is the lessee and will be required to recognize these arrangements on the financial statements. The ASU will become effective for the Company for interim and annual reporting periods in fiscal years beginning after December 15, 2018. The Company expects to adopt the new standard on its effective date. A modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company has assembled an implementation team and is currently beginning the assessment of the impact that ASU No. 2016-02 will have on its consolidated financial statements and related disclosures. The Company does not expect a significant change in its leasing activity between now and adoption. The Company believes substantially all of its leases will continue to be classified as operating leases under the new standard. Subsequent to the adoption of the new standard, common area maintenance provided in lease contracts will be accounted for as a non-lease component within the scope of the new revenue standard. As a result, the Company will be required to recognize revenues associated with leases separately from revenues associated with common area maintenance. The Company is continuing to evaluate whether the variable payment provisions in the new lease standard or the allocation and recognition provisions of the new revenue standard will affect the timing of recognition of lease and non-lease revenue. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, which amends ASC Topic 326, Financial Instruments - Credit Losses. The standard changes the methodology for measuring credit losses on financial instruments and timing of when such losses are recorded. ASU No. 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, which amends ASC Topic 230, Statement of Cash Flows. The standard clarifies the treatment of several cash flow issues with the objective of reducing diversity in practice. ASU No. 2016-15 is effective for fiscal years beginning after December 15, 2017. The Company is currently reviewing the ASU to assess the potential impact on its consolidated financial statements and related disclosures but does not anticipate that this ASU will have a material impact. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows , which amends ASC Topic 230, Statement of Cash Flows. The standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. ASU No. 2016-18 is effective for fiscal years beginning after December 15, 2017. The Company is currently reviewing the ASU to assess the potential impact on its consolidated financial statements and related disclosures but does not anticipate that this ASU will have a material impact. The primary change will be to include restricted cash in cash and cash equivalents. In February 2017, the FASB issued ASU No. 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets, which amends ASC Topic 610-20. This standard clarifies the scope of asset derecognition and adds further guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. ASU No. 2017-05 is effective for fiscal years beginning after December 15, 2017. The Company is currently reviewing the ASU to assess the potential impact on its consolidated financial statements and related disclosures but does not anticipate that this ASU will have a material impact. |
Rental Properties
Rental Properties | 6 Months Ended |
Jun. 30, 2017 | |
Real Estate [Abstract] | |
Rental Properties | Rental Properties The following table summarizes the carrying amounts of rental properties as of June 30, 2017 and December 31, 2016 (in thousands): June 30, 2017 December 31, 2016 Buildings and improvements $ 3,800,488 $ 3,272,865 Furniture, fixtures & equipment 84,463 40,684 Land 1,054,524 917,748 Leasehold interests 25,774 — 4,965,249 4,231,297 Accumulated depreciation (676,364 ) (635,535 ) Total $ 4,288,885 $ 3,595,762 Depreciation expense on rental properties was $59.3 million and $49.8 million for the six months ended June 30, 2017 and 2016 , respectively. |
Investments and Dispositions
Investments and Dispositions | 6 Months Ended |
Jun. 30, 2017 | |
Investments [Abstract] | |
Investments | Investments and Dispositions The Company's investment spending during the six months ended June 30, 2017 totaled $1.2 billion , and included investments in each of its four operating segments. Entertainment investment spending during the six months ended June 30, 2017 totaled $114.2 million , including spending on build-to-suit development and redevelopment of megaplex theatres, entertainment retail centers and family entertainment centers, as well as $47.9 million in acquisitions of three megaplex theatres. Education investment spending during the six months ended June 30, 2017 totaled $182.2 million , including spending on build-to-suit development and redevelopment of public charter schools, early education centers and private schools, as well as $27.0 million in acquisitions of seven early education centers and one public charter school and an investment of $70.5 million in mortgage notes receivable. Recreation investment spending during the six months ended June 30, 2017 totaled $866.1 million , including the transaction with CNL Lifestyle Properties Inc. (CNL Lifestyle) and funds affiliated with Och-Ziff Real Estate (OZRE) valued at $730.8 million discussed below. Additionally, included in recreation investment spending was build-to-suit development of golf entertainment complexes and attractions, redevelopment of ski areas, $34.2 million in acquisitions of three other recreation facilities, and an investment of $10.5 million in a mortgage note secured by one other recreation facility. On April 6, 2017, the Company completed a transaction with CNL Lifestyle and OZRE. The Company acquired the Northstar California Resort, 15 attraction properties (waterparks and amusement parks), five small family entertainment centers and certain related working capital for aggregate consideration valued at $479.8 million , including final purchase price adjustments. Additionally, the Company provided $251.0 million of secured debt financing to OZRE for its purchase of 14 CNL Lifestyle ski properties valued at $374.5 million . Subsequent to the transaction, the Company sold the five family entertainment centers for approximately $6.8 million and one waterpark for approximately $2.5 million . No gain or loss was recognized on these sales. The secured debt financing with OZRE has an initial term of five years with three 2.5 year options to extend. The note bears interest fixed at 8.5% . The Company received a $3.0 million origination fee upon closing that will be recognized using the effective interest method. The Company assumed long-term, triple-net leases on the Northstar California Resort and three of the attractions properties and entered into new long-term, triple-net lease agreements on the remaining attractions properties at closing. Additionally, the Company assumed ground lease agreements on nine of the properties. The Company’s aggregate investment in this transaction was $730.8 million and was funded with $657.5 million of the Company’s common shares, consisting of 8,851,264 newly issued registered common shares valued at $74.28 per share, $61.2 million of cash and assumed working capital liabilities (net of assumed accounts receivable) of $12.1 million . CNL Lifestyle subsequently distributed the common shares to its stockholders on April 20, 2017. The Company's portion of the cash purchase price was funded with borrowings under its unsecured revolving credit facility. This transaction was previously announced as a business combination and, accordingly, related expenses were recognized as transaction costs through December 31, 2016. In connection with the adoption of ASU No. 2017-01 on January 1, 2017, this transaction was determined to be an asset acquisition. As such, transaction costs related to this asset acquisition incurred in 2017 have been capitalized. The aggregate investment of $730.8 million in this transaction was recorded as follows (in thousands): April 6, 2017 Rental properties, net $ 481,006 Mortgage notes and related accrued interest receivable 251,038 Tradenames (included in other assets) 6,355 Below market leases (included in accounts payable and accrued liabilities) (7,611 ) Total investment $ 730,788 Other investment spending during the six months ended June 30, 2017 totaled $0.8 million , and was related to the Adelaar casino and resort project in Sullivan County, New York. During the six months ended June 30, 2017, the Company completed the sale of four entertainment properties for net proceeds totaling $72.3 million . In connection with these sales, the Company recognized a gain on sale of $19.4 million . During the six months ended June 30, 2017, pursuant to tenant purchase options, the Company completed the sale of four public charter schools located in Colorado and Arizona for net proceeds totaling $39.1 million . In connection with these sales, the Company recognized a gain on sale of $6.2 million . Additionally, the Company completed the sale of two education facilities for net proceeds of $9.8 million . In connection with these sales, the Company recognized a gain on sale of $1.9 million . During the six months ended June 30, 2017, the Company received a partial prepayment of $4.0 million on one mortgage note receivable that is secured by the observation deck of the John Hancock building in Chicago, Illinois. In connection with the partial prepayment of this note, the Company received a prepayment fee of $800.0 thousand , which is being recognized over the term of the remaining note using the effective interest method. |
Accounts Receivable, Net
Accounts Receivable, Net | 6 Months Ended |
Jun. 30, 2017 | |
Accounts Receivable, Net [Abstract] | |
Accounts Receivable, Net | Accounts Receivable, Net The following table summarizes the carrying amounts of accounts receivable, net as of June 30, 2017 and December 31, 2016 (in thousands): June 30, December 31, Receivable from tenants $ 15,822 $ 7,564 Receivable from non-tenants 76 497 Receivable from insurance proceeds 782 1,967 Receivable from Sullivan County Infrastructure Revenue Bonds 18,959 22,164 Straight-line rent receivable 71,925 67,618 Allowance for doubtful accounts (1,084 ) (871 ) Total $ 106,480 $ 98,939 |
Investments In Direct Financing
Investments In Direct Financing Lease | 6 Months Ended |
Jun. 30, 2017 | |
Capital Leases, Net Investment in Direct Financing Leases [Abstract] | |
Investments in a Direct Financing Lease | Investment in a Direct Financing Lease The Company’s investment in a direct financing lease relates to the Company’s master lease of 12 public charter school properties as of June 30, 2017 and December 31, 2016 , with affiliates of Imagine Schools, Inc. (Imagine). Investment in a direct financing lease, net represents estimated unguaranteed residual values of leased assets and net unpaid rentals, less related deferred income. The following table summarizes the carrying amounts of investment in a direct financing lease, net as of June 30, 2017 and December 31, 2016 (in thousands): June 30, 2017 December 31, 2016 Total minimum lease payments receivable $ 210,375 $ 215,753 Estimated unguaranteed residual value of leased assets 82,350 85,247 Less deferred income (1) (192,120 ) (198,302 ) Less allowance for lease losses (7,298 ) — Investment in a direct financing lease, net $ 93,307 $ 102,698 (1) Deferred income is net of $1.3 million of initial direct costs at June 30, 2017 and December 31, 2016 . During the three months ended June 30, 2017, the Company entered into negotiations with Imagine to reduce future rental payments and/or the term of the leases on six properties. As a result of the revised lease terms, the Company anticipates the lease agreements on these six properties will be classified as operating leases effective in the third quarter of 2017. Management evaluated whether it could recover its investment in these leases taking into account the revised lease terms and independent appraisals prepared as of June 30, 2017, and determined the carrying value of the investment in the direct financing leases exceeded the expected lease payments to be received and residual values for these six leases. Accordingly, the Company recorded an impairment charge of $9.6 million during the three months ended June 30, 2017, which included an allowance for lease loss of $7.3 million and a charge of $2.3 million related to estimated unguaranteed residual value. The Company determined that no allowance for losses was necessary at December 31, 2016 . Additionally, during the three months ended June 30, 2017, the Company performed its annual review of the estimated unguaranteed residual value on its other properties leased to Imagine and determined that the residual value on one of these properties was impaired. As such, the Company recorded an impairment charge of the unguaranteed residual value of $0.6 million during the three months ended June 30, 2017. The Company’s direct financing lease has expiration dates ranging from approximately 15 to 18 years. Future minimum rentals receivable on this direct financing lease at June 30, 2017 are as follows (in thousands): Amount Year: 2017 $ 5,479 2018 11,182 2019 11,517 2020 11,863 2021 12,219 Thereafter 158,115 Total $ 210,375 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2017 | |
Long-term Debt, Unclassified [Abstract] | |
Long-Term Debt | Debt and Capital Markets During the six months ended June 30, 2017, the Company prepaid in full six mortgage notes payable totaling $48.1 million that were secured by six theatre properties. In addition, the Company prepaid in full a mortgage note payable of $87.0 million that was secured by 11 theatre properties. In connection with this note payoff, the Company recorded a gain on early extinguishment of debt of $1.0 million for the three months ended June 30, 2017. The gain represents the difference between the fair value of the note and the amount due at payoff as the note was recorded at fair value upon acquisition and was not anticipated to be paid off in advance of maturity. On May 23, 2017, the Company issued $450.0 million in aggregate principal amount of senior notes due on June 1, 2027 pursuant to an underwritten public offering. The notes bear interest at an annual rate of 4.50% . Interest is payable on June 1 and December 1 of each year beginning on December 1, 2017 until the stated maturity date of June 1, 2027. The notes were issued at 99.393% of their face value and are unsecured and guaranteed by certain of the Company's subsidiaries. The notes contain various covenants, including: (i) a limitation on incurrence of any debt which would cause the ratio of the Company’s debt to adjusted total assets to exceed 60% ; (ii) a limitation on incurrence of any secured debt which would cause the ratio of the Company’s secured debt to adjusted total assets to exceed 40% ; (iii) a limitation on incurrence of any debt which would cause the Company’s debt service coverage ratio to be less than 1.5 times and (iv) the maintenance at all times of the Company's total unencumbered assets such that they are not less than 150% of the Company’s outstanding unsecured debt. During the six months ended June 30, 2017 , the Company issued an aggregate of 928,219 common shares under the direct share purchase component of its Dividend Reinvestment and Direct Share Purchase Plan (DSPP) for total net proceeds of $67.9 million . These proceeds were used to pay down a portion of the Company's unsecured revolving credit facility. During the six months ended June 30, 2017 , the Company issued 8,851,264 common shares in connection with the transactions with CNL Lifestyle and OZRE. See Note 4 for further information. Subsequent to June 30, 2017, the Company prepaid in full three mortgage notes payable totaling $24.9 million that were secured by three theatre properties. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2017 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities The Company’s variable interest in VIEs currently are in the form of equity ownership and loans provided by the Company to a VIE or other partner. The Company examines specific criteria and uses its judgment when determining if the Company is the primary beneficiary of a VIE. Factors considered in determining whether the Company is the primary beneficiary include risk and reward sharing, experience and financial condition of other partner(s), voting rights, involvement in day-to-day capital and operating decisions, representation on a VIE’s executive committee, existence of unilateral kick-out rights or voting rights, and level of economic disproportionality between the Company and the other partner(s). Consolidated VIEs As of June 30, 2017 , the Company had invested approximately $14.9 million in one real estate project which is a VIE. This entity does not have any other significant assets or liabilities at June 30, 2017 and was established to facilitate the development of a theatre project. Unconsolidated VIE At June 30, 2017 , the Company's recorded investment in two unconsolidated VIEs totaled $177.5 million . The Company's maximum exposure to loss associated with these VIEs is limited to the Company's outstanding mortgage notes and related accrued interest receivable of $177.5 million . These mortgage notes are secured by three recreation properties and one public charter school. While these entities are VIEs, the Company has determined that the power to direct the activities of these VIEs that most significantly impact the VIEs' economic performance is not held by the Company. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Summary of Derivative Instruments [Abstract] | |
Derivative Instruments | Derivative Instruments All derivatives are recognized at fair value in the consolidated balance sheets within the line items "Other assets" and "Accounts payable and accrued liabilities" as applicable. The Company's derivatives are subject to a master netting arrangement and the Company has elected not to offset its derivative position for purposes of balance sheet presentation and disclosure. The Company had derivative liabilities of $0.3 million and $2.5 million recorded in “Accounts payable and accrued liabilities” and derivative assets of $29.5 million and $35.9 million recorded in “Other assets” in the consolidated balance sheet at June 30, 2017 and December 31, 2016 , respectively. The Company had not posted or received collateral with its derivative counterparties as of June 30, 2017 or December 31, 2016 . See Note 10 for disclosures relating to the fair value of the derivative instruments as of June 30, 2017 and December 31, 2016 . Risk Management Objective of Using Derivatives The Company is exposed to certain risk arising from both its business operations and economic conditions including the effect of changes in foreign currency exchange rates and interest rates on its LIBOR based borrowings. The Company manages this risk by following established risk management policies and procedures including the use of derivatives. The Company’s objective in using derivatives is to add stability to reported earnings and to manage its exposure to foreign exchange and interest rate movements or other identified risks. To accomplish this objective, the Company primarily uses interest rate swaps, cross-currency swaps and foreign currency forwards. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements on its LIBOR based borrowings. To accomplish these objectives, the Company currently uses interest rate swaps as its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. As of June 30, 2017 , the Company had three interest rate swap agreements to fix the interest rate on $240.0 million of the unsecured term loan facility at 3.78% from January 5, 2016 to July 5, 2017. Additionally, as of June 30, 2017 , the Company had two interest rate swap agreements to fix the interest rate at 2.94% on an additional $60.0 million of the unsecured term loan facility from September 8, 2015 to July 5, 2017 and on $300.0 million of the unsecured term loan facility from July 6, 2017 to April 5, 2019. The effective portion of changes in the fair value of interest rate derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (AOCI) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the six months ended June 30, 2017 and 2016 , such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. No hedge ineffectiveness on cash flow hedges was recognized during the six months ended June 30, 2017 and 2016 . Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. As of June 30, 2017 , the Company estimates t hat during the twelve months ending June 30, 2018, $0.5 million will be reclassified from AOCI to interest expense. Cash Flow Hedges of Foreign Exchange Risk The Company is exposed to foreign currency exchange risk against its functional currency, USD, on its four Canadian properties. The Company uses cross currency swaps and foreign currency forwards to mitigate its exposure to fluctuations in the USD-CAD exchange rate on its Canadian properties. These foreign currency derivatives should hedge a significant portion of the Company's expected CAD denominated cash flow of the Canadian properties as their impact on the Company's cash flow when settled should move in the opposite direction of the exchange rates used to translate revenues and expenses of these properties. As of June 30, 2017 , the Company had USD-CAD cross-currency swaps with a fixed original notional value of $100.0 million CAD and $98.1 million USD. The net effect of these swaps is to lock in an exchange rate of $1.05 CAD per USD on approximately $13.5 million of annual CAD denominated cash flows on the properties through June 2018. The effective portion of changes in the fair value of foreign currency derivatives designated and that qualify as cash flow hedges of foreign exchange risk is recorded in AOCI and subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivative, as well as amounts excluded from the assessment of hedge effectiveness, is recognized directly in earnings. No hedge ineffectiveness on foreign currency derivatives was recognized for the six months ended June 30, 2017 and 2016 . As of June 30, 2017 , the Company estimates t hat during the twelve months ending June 30, 2018, $2.4 million of gains will be reclassified from AOCI to other income. Net Investment Hedges As discussed above, the Company is exposed to fluctuations in foreign exchange rates on its four Canadian properties. As such, the Company uses currency forward agreements to hedge its exposure to changes in foreign exchange rates. Currency forward agreements involve fixing the USD-CAD exchange rate for delivery of a specified amount of foreign currency on a specified date. The currency forward agreements are typically cash settled in USD for their fair value at or close to their settlement date. In order to hedge the net investment in four of the Canadian properties, on June 13, 2013, the Company entered into a forward contract with a fixed notional value of $100.0 million CAD and $94.3 million USD with a July 2018 settlement. The exchange rate of this forward contract is approximately $1.06 CAD per USD. Additionally, on February 28, 2014, the Company entered into a forward contract with a fixed notional value of $100.0 million CAD and $88.1 million USD with a July 2018 settlement date. The exchange rate of this forward contract is approximately $1.13 CAD per USD. These forward contracts should hedge a significant portion of the Company’s CAD denominated net investment in these four centers through July 2018 as the impact on AOCI from marking the derivative to market should move in the opposite direction of the translation adjustment on the net assets of these four Canadian properties. For foreign currency derivatives designated as net investment hedges, the effective portion of changes in the fair value of the derivatives are reported in AOCI as part of the cumulative translation adjustment. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. No hedge ineffectiveness on net investment hedges was recognized for the six months ended June 30, 2017 and 2016 . Amounts are reclassified out of AOCI into earnings when the hedged net investment is either sold or substantially liquidated. Below is a summary of the effect of derivative instruments on the consolidated statements of changes in equity and income for the three and six months ended June 30, 2017 and 2016 . Effect of Derivative Instruments on the Consolidated Statements of Changes in Equity and Income for the Three and Six Months Ended June 30, 2017 and 2016 (Dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, Description 2017 2016 2017 2016 Interest Rate Swaps Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) $ (297 ) $ (1,769 ) $ 207 $ (6,626 ) Amount of Expense Reclassified from AOCI into Earnings (Effective Portion) (1) (913 ) (1,339 ) (1,984 ) (2,653 ) Cross Currency Swaps Amount of Loss Recognized in AOCI on Derivative (Effective Portion) (209 ) (88 ) (375 ) (1,438 ) Amount of Income Reclassified from AOCI into Earnings (Effective Portion) (2) 697 595 1,359 1,314 Currency Forward Agreements Amount of Loss Recognized in AOCI on Derivative (Effective Portion) (3,166 ) (31 ) (4,715 ) (7,554 ) Amount of Income Reclassified from AOCI into Earnings (Effective Portion) — — — — Total Amount of Loss Recognized in AOCI on Derivative (Effective Portion) $ (3,672 ) $ (1,888 ) $ (4,883 ) $ (15,618 ) Amount of Expense Reclassified from AOCI into Earnings (Effective Portion) (216 ) (744 ) (625 ) (1,339 ) (1) Included in "Interest expense, net" in the accompanying consolidated statements of income for the three and six months ended June 30, 2017 and 2016 . (2) Included in "Other income" in the accompanying consolidated statements of income for the three and six months ended June 30, 2017 and 2016 . Credit-risk-related Contingent Features The Company has agreements with each of its interest rate derivative counterparties that contain a provision where if the Company defaults on any of its obligations for borrowed money or credit in an amount exceeding $25.0 million and such default is not waived or cured within a specified period of time, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its interest rate derivative obligations. As of June 30, 2017 , the fair value of the Company’s derivatives in a liability position related to these agreements was $0.3 million . If the Company breached any of the contractual provisions of these derivative contracts, it would be required to settle its obligations under the agreements at their termination value, after considering the right of offset, of $0.1 million . |
Fair Value Disclosures
Fair Value Disclosures | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures The Company has certain financial instruments that are required to be measured under the FASB’s Fair Value Measurement guidance. The Company currently does not have any non-financial assets and non-financial liabilities that are required to be measured at fair value on a recurring basis. As a basis for considering market participant assumptions in fair value measurements, the FASB’s Fair Value Measurement guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). Level 1 inputs use quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. Derivative Financial Instruments The Company uses interest rate swaps, foreign currency forwards and cross-currency swaps to manage its interest rate and foreign currency risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, foreign exchange rates, and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments. The variable cash payments are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. In conjunction with the FASB's Fair Value Measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Although the Company determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives also use Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by itself and its counterparties. As of June 30, 2017 , the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives and therefore, classified its derivatives as Level 2 within the fair value reporting hierarchy. The table below presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016 aggregated by the level in the fair value hierarchy within which those measurements are classified and by derivative type. Assets and Liabilities Measured at Fair Value on a Recurring Basis at June 30, 2017 and December 31, 2016 (Dollars in thousands) Description Quoted Prices in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets (Liabilities) Balance at end of period June 30, 2017 Cross-Currency Swaps* $ — $ 2,424 $ — $ 2,424 Currency Forward Agreements* $ — $ 27,067 $ — $ 27,067 Interest Rate Swap Agreements** $ — $ (290 ) $ — $ (290 ) December 31, 2016: Cross-Currency Swaps* $ — $ 4,158 $ — $ 4,158 Currency Forward Agreements* $ — $ 31,782 $ — $ 31,782 Interest Rate Swap Agreements** $ — $ (2,482 ) $ — $ (2,482 ) *Included in "Other assets" in the accompanying consolidated balance sheets. **Included in "Accounts payable and accrued liabilities" in the accompanying consolidated balance sheets. Non-recurring fair value measurements The table below presents the Company's assets measured at fair value on a non-recurring basis during the six months ended June 30, 2017 aggregated by the level in the fair value hierarchy within which those measurements fall. Assets Measured at Fair Value on a Non-Recurring Basis During the Six Months Ended June 30, 2017 (Dollars in thousands) Description Quoted Prices in Significant Significant Balance at June 30, 2017 Investment in a direct financing lease, net $ — $ — $ 35,807 $ 35,807 As discussed further in Note 6, during the three months ended June 30, 2017, the Company recorded impairment charges totaling $10.2 million related to its investment in a direct financing lease, net. Management estimated the fair values of this investment taking into account various factors including independent appraisals, input from an outside broker and current market conditions. The Company determined, based on the inputs, that its valuation of the investment was classified within Level 3 of the fair value hierarchy as many of the assumptions are not observable. Fair Value of Financial Instruments The following methods and assumptions were used by the Company to estimate the fair value of each class of financial instruments at June 30, 2017 and December 31, 2016 : Mortgage notes receivable and related accrued interest receivable: The fair value of the Company’s mortgage notes and related accrued interest receivable is estimated by discounting the future cash flows of each instrument using current market rates. At June 30, 2017 , the Company had a carrying value of $941.6 million in fixed rate mortgage notes receivable outstanding, including related accrued interest, with a weighted average interest rate of approximately 8.45% . The fixed rate mortgage notes bear interest at rates of 7.00% to 11.31% . Discounting the future cash flows for fixed rate mortgage notes receivable using rates of 7.00% to 12.00% , management estimates the fair value of the fixed rate mortgage notes receivable to be approximately $972.8 million with an estimated weighted average market rate of 8.53% at June 30, 2017 . At December 31, 2016 , the Company had a carrying value of $614.0 million in fixed rate mortgage notes receivable outstanding, including related accrued interest, with a weighted average interest rate of approximately 8.77% . The fixed rate mortgage notes bear interest at rates of 7.00% to 11.31% . Discounting the future cash flows for fixed rate mortgage notes receivable using rates of 7.00% to 12.00% , management estimates the fair value of the fixed rate mortgage notes receivable to be $648.5 million with an estimated weighted average market rate of 8.48% at December 31, 2016 . Investment in a direct financing lease, net: At June 30, 2017 , the Company measured $35.8 million of its investment in a direct financing lease, net at fair value as noted in the table above. The remaining fair value of the Company’s investment in a direct financing lease is estimated by discounting the future cash flows of the instrument using current market rates. At June 30, 2017 , the carrying value of the remaining investment in a direct financing lease was $57.5 million , with a weighted average effective interest rate of 11.98% . At June 30, 2017, the investment in a direct financing lease bears interest at effective rates of 11.90% to 12.38% . The carrying value of the $57.5 million investment in a direct financing lease approximated the fair market value at June 30, 2017 . At December 31, 2016 , the Company had an investment in a direct financing lease with a carrying value of $102.7 million , and a weighted average effective interest rate of 12.00% . At December 31, 2016, the investment in a direct financing lease bears interest at effective interest rates of 11.79% to 12.38% . The carrying value of the investment in a direct financing lease approximated the fair market value at December 31, 2016 . Derivative instruments: Derivative instruments are carried at their fair market value. Debt instruments: The fair value of the Company's debt is estimated by discounting the future cash flows of each instrument using current market rates. At June 30, 2017 , the Company had a carrying value of $375.0 million in variable rate debt outstanding with a weighted average interest rate of approximately 3.28% . The carrying value of the variable rate debt outstanding approximated the fair market value at June 30, 2017 . At December 31, 2016 , the Company had a carrying value of $375.0 million in variable rate debt outstanding with a weighted average interest rate of approximately 3.23% . The carrying value of the variable rate debt outstanding approximated the fair market value at December 31, 2016 . At June 30, 2017 and December 31, 2016 , $300.0 million of variable rate debt outstanding under the Company's unsecured term loan facility had been effectively converted to a fixed rate through April 5, 2019 by interest rate swap agreements. At June 30, 2017 , the Company had a carrying value of $2.45 billion in fixed rate long-term debt outstanding with a weighted average interest rate of approximately 5.16% . Discounting the future cash flows for fixed rate debt using June 30, 2017 market rates of 3.06% to 4.56% , management estimates the fair value of the fixed rate debt to be approximately $2.56 billion with an estimated weighted average market rate of 4.03% at June 30, 2017 . At December 31, 2016 , the Company had a carrying value of $2.14 billion in fixed rate long-term debt outstanding with an average weighted interest rate of approximately 5.27% . Discounting the future cash flows for fixed rate debt using December 31, 2016 market rates of 2.97% to 4.75% , management estimates the fair value of the fixed rate debt to be approximately $2.21 billion with an estimated weighted average market rate of 4.26% at December 31, 2016 . |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table summarizes the Company’s computation of basic and diluted earnings per share (EPS) for the three and six months ended June 30, 2017 and 2016 (amounts in thousands except per share information): Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Income (numerator) Shares (denominator) Per Share Amount Income Shares Per Share Basic EPS: Income from continuing operations $ 80,535 $ 134,451 Less: preferred dividend requirements (5,952 ) (11,904 ) Net income available to common shareholders $ 74,583 73,159 $ 1.02 $ 122,547 68,621 $ 1.79 Diluted EPS: Net income available to common shareholders $ 74,583 73,159 $ 122,547 68,621 Effect of dilutive securities: Share options — 66 — 68 Net income available to common shareholders $ 74,583 73,225 $ 1.02 $ 122,547 68,689 $ 1.78 Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Income Shares Per Share Income Shares Per Share Basic EPS: Income from continuing operations $ 55,135 $ 109,315 Less: preferred dividend requirements (5,952 ) (11,904 ) Net income available to common shareholders $ 49,183 63,592 $ 0.77 $ 97,411 63,128 $ 1.54 Diluted EPS: Net income available to common shareholders $ 49,183 63,592 $ 97,411 63,128 Effect of dilutive securities: Share options — 86 — 85 Net income available to common shareholders $ 49,183 63,678 $ 0.77 $ 97,411 63,213 $ 1.54 The additional 2.1 million and 2.0 million common shares that would result from the conversion of the Company’s 5.75% Series C cumulative convertible preferred shares and the additional 1.6 million common shares that would result from the conversion of the Company’s 9.0% Series E cumulative convertible preferred shares and the corresponding add-back of the preferred dividends declared on those shares are not included in the calculation of diluted earnings per share for the three and six months ended June 30, 2017 and 2016 , respectively, because the effect is anti-dilutive. The dilutive effect of potential common shares from the exercise of share options is included in diluted earnings per share for the three and six months ended June 30, 2017 and 2016 . However, options to purchase 5 thousand and 84 thousand shares of common shares at per share prices ranging from $61.79 to $76.63 and $61.79 were outstanding for the three months ended June 30, 2017 and 2016, respectively, but were not included in the computation of diluted earnings per share because they were anti-dilutive. Options to purchase 5 thousand and 85 thousand shares of common shares, respectively at per share prices ranging from $61.79 to $76.63 and $61.79 were outstanding for the six months ended June 30, 2017 and 2016, respectively, but were not included in the computation of diluted earnings per share because they were anti-dilutive. |
Equity Incentive Plans
Equity Incentive Plans | 6 Months Ended |
Jun. 30, 2017 | |
Share-based Compensation [Abstract] | |
Equity Incentive Plans | Equity Incentive Plan All grants of common shares and options to purchase common shares were issued under the Company's 2007 Equity Incentive Plan prior to May 12, 2016 and under the 2016 Equity Incentive Plan on and after May 12, 2016. Under the 2016 Equity Incentive Plan, an aggregate of 1,950,000 common shares, options to purchase common shares and restricted share units, subject to adjustment in the event of certain capital events, may be granted. At June 30, 2017 , there were 1,633,001 shares available for grant under the 2016 Equity Incentive Plan. Share Options Share options granted under the 2007 Equity Incentive Plan and the 2016 Equity Incentive Plan have exercise prices equal to the fair market value of a common share at the date of grant. The options may be granted for any reasonable term, not to exceed 10 years, and for employees typically become exercisable at a rate of 25% per year over a four-year period. The Company generally issues new common shares upon option exercise. A summary of the Company’s share option activity and related information is as follows: Number of options Option price per share Weighted avg. exercise price Outstanding at December 31, 2016 285,986 $ 19.02 — $ 61.79 $ 51.93 Exercised (28,175 ) 46.86 — 61.79 54.74 Granted 2,215 76.63 — 76.63 76.63 Forfeited/Expired (1,342 ) 51.64 — 60.03 59.52 Outstanding at June 30, 2017 258,684 $ 19.02 — $ 76.63 $ 51.80 The weighted average fair value of options granted was $7.91 during the six months ended June 30, 2017 . There were no options granted during the six months ended June 30, 2016 . The intrinsic value of stock options exercised was $0.5 million and $3.4 million for the six months ended June 30, 2017 and 2016 , respectively. Additionally, the Company repurchased 21,177 shares into treasury shares in conjunction with the stock options exercised during the six months ended June 30, 2017 with a total value of $1.5 million . At June 30, 2017 , stock-option expense to be recognized in future periods was $0.6 million . The expense related to share options included in the determination of net income for the six months ended June 30, 2017 and 2016 was $0.4 million and $0.5 million , respectively. The following assumptions were used in applying the Black-Scholes option pricing model at the grant dates for the six months ended June 30, 2017 : risk-free interest rate of 2.1% , dividend yield of 5.4% , volatility factors in the expected market price of the Company’s common shares of 22.0% , 0.74% expected forfeiture rate and an expected life of approximately six years. The Company uses historical data to estimate the expected life of the option and the risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. Additionally, expected volatility is computed based on the average historical volatility of the Company’s publicly traded shares. The following table summarizes outstanding options at June 30, 2017 : Exercise price range Options outstanding Weighted avg. life remaining Weighted avg. exercise price Aggregate intrinsic value (in thousands) $ 19.02 - 19.99 11,097 1.9 20.00 - 29.99 — — 30.00 - 39.99 1,428 2.5 40.00 - 49.99 86,913 4.6 50.00 - 59.99 75,995 6.3 60.00 - 69.99 81,036 7.6 70.00 - 76.63 2,215 9.7 258,684 6.0 $ 51.80 $ 5,202 The following table summarizes exercisable options at June 30, 2017 : Exercise price range Options outstanding Weighted avg. life remaining Weighted avg. exercise price Aggregate intrinsic value (in thousands) $ 19.02 - 19.99 11,097 1.9 20.00 - 29.99 — — 30.00 - 39.99 1,428 2.5 40.00 - 49.99 86,913 4.6 50.00 - 59.99 51,332 6.2 60.00 - 69.99 38,375 7.6 70.00 - 76.63 — — 189,145 5.5 $ 49.28 $ 4,273 Nonvested Shares A summary of the Company’s nonvested share activity and related information is as follows: Number of shares Weighted avg. grant date fair value Weighted avg. life remaining Outstanding at December 31, 2016 534,317 $ 59.22 Granted 295,754 76.53 Vested (208,822 ) 57.43 Forfeited (1,342 ) 66.88 Outstanding at June 30, 2017 619,907 $ 68.07 1.46 The holders of nonvested shares have voting rights and receive dividends from the date of grant. These shares vest ratably over a period of three to four years. The fair value of the nonvested shares that vested was $15.0 million and $9.2 million for the six months ended June 30, 2017 and 2016 , respectively. At June 30, 2017 , unamortized share-based compensation expense related to nonvested shares was $27.3 million . Restricted Share Units A summary of the Company’s restricted share unit activity and related information is as follows: Number of shares Weighted avg. grant date fair value Weighted avg. life remaining Outstanding at December 31, 2016 15,805 $ 70.93 Granted 19,030 70.91 Vested (15,805 ) 70.93 Outstanding at June 30, 2017 19,030 $ 70.91 0.83 The holders of restricted share units receive dividend equivalents from the date of grant. The share units vest upon the earlier of the day preceding the next annual meeting of shareholders or a change of control. The settlement date for the shares is selected by the non-employee Trustee, and ranges from one year from the grant date to upon termination of service. At June 30, 2017 , unamortized share-based compensation expense related to restricted share units was $1.1 million . |
Other Commitments And Contingen
Other Commitments And Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments And Contingencies | Other Commitments and Contingencies As of June 30, 2017 , the Company had an aggregate of approximately $175.7 million of commitments to fund development projects including 17 entertainment development projects for which it had commitments to fund approximately $65.5 million , 16 education development projects for which it had commitments to fund approximately $55.5 million , and five recreation development projects for which it had commitments to fund approximately $54.7 million . Development costs are advanced by the Company in periodic draws. If the Company determines that construction is not being completed in accordance with the terms of the development agreement, it can discontinue funding construction draws. The Company has agreed to lease the properties to the operators at pre-determined rates upon completion of construction. Additionally as of June 30, 2017 , the Company had a commitment to fund approximately $155.0 million over the next three years, of which $5.0 million had been funded, to complete an indoor waterpark hotel and adventure park at the Adelaar casino and resort project in Sullivan County, New York. The Company is also responsible for the construction of the casino and resort project common infrastructure. In June 2016, the Sullivan County Infrastructure Local Development Corporation issued $110.0 million of Series 2016 Revenue Bonds which is expected to fund a substantial portion of such construction costs. The Company received an initial reimbursement of $43.4 million of construction costs during the year ended December 31, 2016 and an additional reimbursement of $11.7 million during the three months ended March 31, 2017. The Company expects to receive an additional $33.2 million of reimbursements over the balance of the construction period. Construction of infrastructure improvements is currently expected to be completed in 2018. The Company has certain commitments related to its mortgage note investments that it may be required to fund in the future. The Company is generally obligated to fund these commitments at the request of the borrower or upon the occurrence of events outside of its direct control. As of June 30, 2017 , the Company had eight mortgage notes receivable with commitments totaling approximately $11.7 million . If commitments are funded in the future, interest will be charged at rates consistent with the existing investments. The Company has provided guarantees of the payment of certain economic development revenue bonds totaling $24.9 million related to two theatres in Louisiana for which the Company earns a fee at annual rates of 2.88% to 4.00% over the 30-year terms of the related bonds. The Company recorded $10.5 million as a deferred asset included in other assets and $10.5 million included in other liabilities in the accompanying consolidated balance sheet as of June 30, 2017 related to these guarantees. No amounts have been accrued as a loss contingency related to these guarantees because payment by the Company is not probable. In connection with construction of its development projects and related infrastructure, certain public agencies require posting of surety bonds to guarantee that the Company's obligations are satisfied. These bonds expire upon the completion of the improvements or infrastructure. As of June 30, 2017 , the Company had six surety bonds outstanding totaling $24.3 million . Prior proposed casino and resort developers Concord Associates, L.P., Concord Resort, LLC and Concord Kiamesha LLC, which are affiliates of Louis Cappelli and from whom the Company acquired the Adelaar resort property (the Cappelli Group), commenced litigation against the Company beginning in 2011 regarding matters relating to the acquisition of that property and the Company's relationship with the Empire Resorts, Inc. and certain of its subsidiaries. This litigation involves three separate cases filed in state and federal court. Two of the cases, a state and the federal case, are closed and resulted in no liability by the Company. The remaining case was filed on October 20, 2011 by the Cappelli Group against the Company and two of its affiliates in the Supreme Court of the State of New York, County of Westchester (the Westchester Action), asserting a claim for breach of contract and the implied covenant of good faith, and seeking damages of at least $800 million , based on allegations that the Company had breached an agreement (the Casino Development Agreement), dated June 18, 2010. The Company moved to dismiss the complaint in the Westchester Action based on a decision issued by the Sullivan County Supreme Court ( one of the two closed cases referenced above) on June 30, 2014, as affirmed by the Appellate Division, Third Department (the Sullivan Action). On January 26, 2016, the Westchester County Supreme Court denied the Company's motion to dismiss but ordered the Cappelli Group to amend its pleading and remove all claims and allegations previously determined by the Sullivan Action. On February 18, 2016, the Cappelli Group filed an amended complaint asserting a single cause of action for breach of the covenant of good faith and fair dealing based upon allegations the Company had interfered with plaintiffs’ ability to obtain financing which complied with the Casino Development Agreement. On March 23, 2016, the Company filed a motion to dismiss the Cappelli Group’s revised amended complaint. On January 5, 2017, the Westchester County Supreme Court denied the Company’s second motion to dismiss. Discovery is ongoing. The Company has not determined that losses related to the remaining Westchester Action are probable. In light of the inherent difficulty of predicting the outcome of litigation generally, the Company does not have sufficient information to determine the amount or range of reasonably possible loss with respect to these matters. The Company’s assessments are based on estimates and assumptions that have been deemed reasonable by management, but that may prove to be incomplete or inaccurate, and unanticipated events and circumstances may occur that might cause the Company to change those estimates and assumptions. The Company intends to vigorously defend the claims asserted against the Company and certain of its subsidiaries by the Cappelli Group and its affiliates, for which the Company believes it has meritorious defenses, but there can be no assurances as to the outcome of the claims and related litigation. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company groups investments into four reportable operating segments: Entertainment, Education, Recreation and Other. The financial information summarized below is presented by reportable operating segment: Balance Sheet Data: As of June 30, 2017 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Total Assets $ 2,200,480 $ 1,434,537 $ 1,993,713 $ 201,163 $ 108,993 $ 5,938,886 As of December 31, 2016 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Total Assets $ 2,168,669 $ 1,308,288 $ 1,120,498 $ 202,394 $ 65,173 $ 4,865,022 Operating Data: Three Months Ended June 30, 2017 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Rental revenue $ 65,462 $ 22,333 $ 29,384 $ 2,290 $ — $ 119,469 Tenant reimbursements 3,941 — — — — 3,941 Other income 606 1 — — 697 1,304 Mortgage and other financing income 1,096 8,868 13,104 — — 23,068 Total revenue 71,105 31,202 42,488 2,290 697 147,782 Property operating expense 5,545 32 29 353 113 6,072 Total investment expenses 5,545 32 29 353 113 6,072 Net operating income - before unallocated items 65,560 31,170 42,459 1,937 584 141,710 Reconciliation to Consolidated Statements of Income: General and administrative expense (10,660 ) Costs associated with loan refinancing or payoff (9 ) Gain on early extinguishment of debt 977 Interest expense, net (32,967 ) Transaction costs (218 ) Impairment charges (10,195 ) Depreciation and amortization (33,148 ) Equity in income from joint ventures 59 Gain on sale of real estate 25,461 Income tax expense (475 ) Net income 80,535 Preferred dividend requirements (5,952 ) Net income available to common shareholders of EPR Properties $ 74,583 Operating Data: Three Months Ended June 30, 2016 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Rental revenue $ 61,258 $ 17,717 $ 14,789 $ 2,291 $ — $ 96,055 Tenant reimbursements 3,891 — — — — 3,891 Other income 210 — 1,321 — 595 2,126 Mortgage and other financing income 1,481 7,178 7,268 34 — 15,961 Total revenue 66,840 24,895 23,378 2,325 595 118,033 Property operating expense 5,335 — — 103 142 5,580 Total investment expenses 5,335 — — 103 142 5,580 Net operating income - before unallocated items 61,505 24,895 23,378 2,222 453 112,453 Reconciliation to Consolidated Statements of Income: General and administrative expense (9,000 ) Costs associated with loan refinancing or payoff (339 ) Interest expense, net (22,756 ) Transaction costs (1,490 ) Depreciation and amortization (25,666 ) Equity in income from joint ventures 86 Gain on sale of real estate 2,270 Income tax expense (423 ) Net income 55,135 Preferred dividend requirements (5,952 ) Net income available to common shareholders of EPR Properties $ 49,183 Operating Data: Six Months Ended June 30, 2017 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Rental revenue $ 130,553 $ 44,690 $ 46,683 $ 4,580 $ — $ 226,506 Tenant reimbursements 7,690 — — — — 7,690 Other income 612 1 — — 1,383 1,996 Mortgage and other financing income 2,275 17,417 21,010 — — 40,702 Total revenue 141,130 62,108 67,693 4,580 1,383 276,894 Property operating expense 11,380 32 57 693 260 12,422 Total investment expenses 11,380 32 57 693 260 12,422 Net operating income - before unallocated items 129,750 62,076 67,636 3,887 1,123 264,472 Reconciliation to Consolidated Statements of Income: General and administrative expense (21,717 ) Costs associated with loan refinancing or payoff (14 ) Gain on early extinguishment of debt 977 Interest expense, net (63,659 ) Transaction costs (275 ) Impairment charges (10,195 ) Depreciation and amortization (61,225 ) Equity in income from joint ventures 51 Gain on sale of real estate 27,465 Income tax expense (1,429 ) Net income 134,451 Preferred dividend requirements (11,904 ) Net income available to common shareholders of EPR Properties $ 122,547 Operating Data: Six Months Ended June 30, 2016 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Rental revenue $ 121,396 $ 34,897 $ 29,485 $ 4,055 $ — $ 189,833 Tenant reimbursements 7,754 2 — — — 7,756 Other income 214 — 1,810 — 1,312 3,336 Mortgage and other financing income 3,633 17,909 14,266 68 — 35,876 Total revenue 132,997 52,808 45,561 4,123 1,312 236,801 Property operating expense 10,587 — 8 186 280 11,061 Other expense — — — 5 — 5 Total investment expenses 10,587 — 8 191 280 11,066 Net operating income - before unallocated items 122,410 52,808 45,553 3,932 1,032 225,735 Reconciliation to Consolidated Statements of Income: General and administrative expense (18,218 ) Costs associated with loan refinancing or payoff (891 ) Interest expense, net (46,045 ) Transaction costs (1,934 ) Depreciation and amortization (51,621 ) Equity in income from joint ventures 298 Gain on sale of real estate 2,270 Income tax expense (279 ) Net income 109,315 Preferred dividend requirements (11,904 ) Net income available to common shareholders of EPR Properties $ 97,411 |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 6 Months Ended |
Jun. 30, 2017 | |
Condensed Consolidating Financial Statements [Abstract] | |
Condensed Consolidating Financial Statements | Condensed Consolidating Financial Statements A portion of the Company's subsidiaries have guaranteed the Company’s indebtedness under the Company's unsecured credit facilities and existing senior unsecured notes. The guarantees are joint and several, full and unconditional and subject to customary release provisions. The following summarizes the Company’s condensed consolidating information as of June 30, 2017 and December 31, 2016 and for the three and six months ended June 30, 2017 and 2016 (in thousands): Condensed Consolidating Balance Sheet As of June 30, 2017 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Assets Rental properties, net $ — $ 3,394,620 $ 894,265 $ — $ 4,288,885 Land held for development — 12,400 21,272 — 33,672 Property under development 2 227,534 44,156 — 271,692 Mortgage notes and related accrued interest receivable — 936,219 5,380 — 941,599 Investment in a direct financing lease, net — 93,307 — — 93,307 Investment in joint ventures — — 5,581 — 5,581 Cash and cash equivalents 65,428 3,858 1,586 — 70,872 Restricted cash 1,400 22,515 340 — 24,255 Accounts receivable, net 710 93,920 11,850 — 106,480 Intercompany notes receivable — 179,589 — (179,589 ) — Investments in subsidiaries 5,634,271 — — (5,634,271 ) — Other assets 22,804 23,861 55,878 — 102,543 Total assets $ 5,724,615 $ 4,987,823 $ 1,040,308 $ (5,813,860 ) $ 5,938,886 Liabilities and Equity Liabilities: Accounts payable and accrued liabilities $ 61,349 $ 64,417 $ 16,760 $ — $ 142,526 Dividends payable 30,996 — — — 30,996 Unearned rents and interest — 64,956 6,142 — 71,098 Intercompany notes payable — — 179,589 (179,589 ) — Debt 2,730,924 — 61,996 — 2,792,920 Total liabilities 2,823,269 129,373 264,487 (179,589 ) 3,037,540 Total equity 2,901,346 4,858,450 775,821 (5,634,271 ) 2,901,346 Total liabilities and equity $ 5,724,615 $ 4,987,823 $ 1,040,308 $ (5,813,860 ) $ 5,938,886 Condensed Consolidating Balance Sheet As of December 31, 2016 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Assets Rental properties, net $ — $ 3,164,622 $ 431,140 $ — $ 3,595,762 Land held for development — 1,258 21,272 — 22,530 Property under development 1,010 247,239 48,861 — 297,110 Mortgage notes and related accrued interest receivable — 612,141 1,837 — 613,978 Investment in a direct financing lease, net — 102,698 — — 102,698 Investment in joint ventures — — 5,972 — 5,972 Cash and cash equivalents 16,586 1,157 1,592 — 19,335 Restricted cash 365 8,352 1,027 — 9,744 Accounts receivable, net 556 89,145 9,238 — 98,939 Intercompany notes receivable — 179,589 — (179,589 ) — Investments in subsidiaries 4,521,095 — — (4,521,095 ) — Other assets 21,768 23,068 54,118 — 98,954 Total assets $ 4,561,380 $ 4,429,269 $ 575,057 $ (4,700,684 ) $ 4,865,022 Liabilities and Equity Liabilities: Accounts payable and accrued liabilities $ 63,431 $ 52,061 $ 4,266 $ — $ 119,758 Dividends payable 26,318 — — — 26,318 Unearned rents and interest — 46,647 773 — 47,420 Intercompany notes payable — — 179,589 (179,589 ) — Debt 2,285,730 — 199,895 — 2,485,625 Total liabilities 2,375,479 98,708 384,523 (179,589 ) 2,679,121 Total equity 2,185,901 4,330,561 190,534 (4,521,095 ) 2,185,901 Total liabilities and equity $ 4,561,380 $ 4,429,269 $ 575,057 $ (4,700,684 ) $ 4,865,022 Condensed Consolidating Statement of Income Three Months Ended June 30, 2017 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Rental revenue $ — $ 95,048 $ 24,421 $ — $ 119,469 Tenant reimbursements — 1,440 2,501 — 3,941 Other income — 607 697 — 1,304 Mortgage and other financing income 232 22,771 65 — 23,068 Intercompany fee income 678 — — (678 ) — Interest income on intercompany notes receivable — 2,411 — (2,411 ) — Total revenue 910 122,277 27,684 (3,089 ) 147,782 Equity in subsidiaries’ earnings 115,062 — — (115,062 ) — Property operating expense — 3,060 3,012 — 6,072 Intercompany fee expense — — 678 (678 ) — General and administrative expense — 8,688 1,972 — 10,660 Costs associated with loan refinancing or payoff — — 9 — 9 Gain on early extinguishment of debt — — (977 ) — (977 ) Interest expense, net 34,602 (2,461 ) 826 — 32,967 Interest expense on intercompany notes payable — — 2,411 (2,411 ) — Transaction costs 218 — — — 218 Impairment charges — 10,195 — — 10,195 Depreciation and amortization 237 25,236 7,675 — 33,148 Income before equity in income from joint ventures and other items 80,915 77,559 12,078 (115,062 ) 55,490 Equity in income from joint ventures — — 59 — 59 Gain on sale of real estate — 24,343 1,118 — 25,461 Income before income taxes 80,915 101,902 13,255 (115,062 ) 81,010 Income tax expense (380 ) — (95 ) — (475 ) Net income 80,535 101,902 13,160 (115,062 ) 80,535 Preferred dividend requirements (5,952 ) — — — (5,952 ) Net income available to common shareholders of EPR Properties $ 74,583 $ 101,902 $ 13,160 $ (115,062 ) $ 74,583 Comprehensive income $ 81,627 $ 101,902 $ 13,635 $ (115,537 ) $ 81,627 Condensed Consolidating Statement of Income Three Months Ended June 30, 2016 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Rental revenue $ — $ 82,393 $ 13,662 $ — $ 96,055 Tenant reimbursements — 1,372 2,519 — 3,891 Other income — 1,329 797 — 2,126 Mortgage and other financing income 212 15,659 90 — 15,961 Intercompany fee income 688 — — (688 ) — Interest income on intercompany notes receivable — 2,500 — (2,500 ) — Total revenue 900 103,253 17,068 (3,188 ) 118,033 Equity in subsidiaries’ earnings 78,883 — — (78,883 ) — Property operating expense — 2,555 3,025 — 5,580 Intercompany fee expense — — 688 (688 ) — Other expense — — — — — General and administrative expense — 7,718 1,282 — 9,000 Costs associated with loan refinancing or payoff — 339 — — 339 Interest expense, net 22,437 (1,954 ) 2,273 — 22,756 Interest expense on intercompany notes payable — — 2,500 (2,500 ) — Transaction costs 1,394 — 96 — 1,490 Depreciation and amortization 446 21,674 3,546 — 25,666 Income before equity in income from joint ventures and other items 55,506 72,921 3,658 (78,883 ) 53,202 Equity in income from joint ventures — — 86 — 86 Gain on sale of real estate — 2,270 — — 2,270 Income before income taxes 55,506 75,191 3,744 (78,883 ) 55,558 Income tax expense (371 ) — (52 ) — (423 ) Net income 55,135 75,191 3,692 (78,883 ) 55,135 Preferred dividend requirements (5,952 ) — — — (5,952 ) Net income available to common shareholders of EPR Properties $ 49,183 $ 75,191 $ 3,692 $ (78,883 ) $ 49,183 Comprehensive income $ 54,912 $ 75,191 $ 3,900 $ (79,091 ) $ 54,912 Condensed Consolidating Statement of Income Six Months Ended June 30, 2017 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Rental revenue $ — $ 188,579 $ 37,927 $ — $ 226,506 Tenant reimbursements — 2,681 5,009 — 7,690 Other income — 613 1,383 — 1,996 Mortgage and other financing income 464 40,143 95 — 40,702 Intercompany fee income 1,362 — — (1,362 ) — Interest income on intercompany notes receivable — 4,855 — (4,855 ) — Total revenue 1,826 236,871 44,414 (6,217 ) 276,894 Equity in subsidiaries’ earnings 200,104 — — (200,104 ) — Property operating expense — 6,322 6,100 — 12,422 Intercompany fee expense — — 1,362 (1,362 ) — General and administrative expense — 18,278 3,439 — 21,717 Costs associated with loan refinancing or payoff — — 14 — 14 Gain on early extinguishment of debt — — (977 ) — (977 ) Interest expense, net 66,060 (5,114 ) 2,713 — 63,659 Interest expense on intercompany notes payable — — 4,855 (4,855 ) — Transaction costs 275 — — — 275 Impairment charges — 10,195 — — 10,195 Depreciation and amortization 430 49,961 10,834 — 61,225 Income before equity in income from joint ventures and other items 135,165 157,229 16,074 (200,104 ) 108,364 Equity in income from joint ventures — — 51 — 51 Gain on sale of real estate — 26,347 1,118 — 27,465 Income before income taxes 135,165 183,576 17,243 (200,104 ) 135,880 Income tax expense (714 ) — (715 ) — (1,429 ) Net income 134,451 183,576 16,528 (200,104 ) 134,451 Preferred dividend requirements (11,904 ) — — — (11,904 ) Net income available to common shareholders of EPR Properties $ 122,547 $ 183,576 $ 16,528 $ (200,104 ) $ 122,547 Comprehensive income $ 136,415 $ 183,576 $ 16,299 $ (199,875 ) $ 136,415 Condensed Consolidating Statement of Income Six Months Ended June 30, 2016 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Rental revenue $ — $ 162,722 $ 27,111 $ — $ 189,833 Tenant reimbursements — 2,721 5,035 — 7,756 Other income — 1,820 1,516 — 3,336 Mortgage and other financing income 424 31,678 3,774 — 35,876 Intercompany fee income 1,341 — — (1,341 ) — Interest income on intercompany notes receivable — 4,836 — (4,836 ) — Total revenue 1,765 203,777 37,436 (6,177 ) 236,801 Equity in subsidiaries’ earnings 155,670 — — (155,670 ) — Property operating expense — 5,218 5,843 — 11,061 Intercompany fee expense — — 1,341 (1,341 ) — Other expense — — 5 — 5 General and administrative expense — 15,378 2,840 — 18,218 Costs associated with loan refinancing or payoff — 339 552 — 891 Interest expense, net 44,627 (3,200 ) 4,618 — 46,045 Interest expense on intercompany notes payable — — 4,836 (4,836 ) — Transaction costs 1,837 — 97 — 1,934 Depreciation and amortization 889 43,748 6,984 — 51,621 Income before equity in income from joint ventures and other items 110,082 142,294 10,320 (155,670 ) 107,026 Equity in income from joint ventures — — 298 — 298 Gain on sale of real estate — 2,270 — — 2,270 Income before income taxes 110,082 144,564 10,618 (155,670 ) 109,594 Income tax (expense) benefit (767 ) — 488 — (279 ) Net income 109,315 144,564 11,106 (155,670 ) 109,315 Preferred dividend requirements (11,904 ) — — — (11,904 ) Net income available to common shareholders of EPR Properties $ 97,411 $ 144,564 $ 11,106 $ (155,670 ) $ 97,411 Comprehensive income $ 107,178 $ 144,564 $ 12,943 $ (157,507 ) $ 107,178 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2017 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non-Guarantor Subsidiaries Consolidated Intercompany fee income (expense) $ 1,362 $ — $ (1,362 ) $ — Interest income (expense) on intercompany receivable/payable — 4,855 (4,855 ) — Net cash (used) provided by other operating activities (58,920 ) 211,488 27,702 180,270 Net cash (used) provided by operating activities (57,558 ) 216,343 21,485 180,270 Investing activities: Acquisition of rental properties and other assets (942 ) (141,528 ) (54,627 ) (197,097 ) Proceeds from sale of real estate 203 101,281 29,242 130,726 Investment in mortgage notes receivable — (97,958 ) (3,763 ) (101,721 ) Proceeds from mortgage note receivable paydown — 15,610 — 15,610 Investment in promissory notes receivable — (1,387 ) — (1,387 ) Proceeds from promissory notes receivable paydown — 1,599 — 1,599 Additions to property under development (727 ) (186,284 ) (9,343 ) (196,354 ) Advances to subsidiaries, net (248,870 ) 95,025 153,845 — Net cash (used) provided by investing activities (250,336 ) (213,642 ) 115,354 (348,624 ) Financing activities: Proceeds from debt facilities and senior unsecured notes 915,000 — — 915,000 Principal payments on debt (465,000 ) — (136,962 ) (601,962 ) Deferred financing fees paid (7,042 ) — — (7,042 ) Costs associated with loan refinancing or payoff (cash portion) — — (6 ) (6 ) Net proceeds from issuance of common shares 68,352 — — 68,352 Purchase of common shares for treasury for vesting (6,729 ) — — (6,729 ) Dividends paid to shareholders (147,845 ) — — (147,845 ) Net cash provided (used) by financing activities 356,736 — (136,968 ) 219,768 Effect of exchange rate changes on cash — — 123 123 Net increase (decrease) in cash and cash equivalents 48,842 2,701 (6 ) 51,537 Cash and cash equivalents at beginning of the period 16,586 1,157 1,592 19,335 Cash and cash equivalents at end of the period $ 65,428 $ 3,858 $ 1,586 $ 70,872 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2016 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non-Guarantor Subsidiaries Consolidated Intercompany fee income (expense) $ 1,341 $ — $ (1,341 ) $ — Interest income (expense) on intercompany receivable/payable — 4,836 (4,836 ) — Net cash (used) provided by other operating activities (43,623 ) 171,721 24,434 152,532 Net cash (used) provided by operating activities (42,282 ) 176,557 18,257 152,532 Investing activities: Acquisition of rental properties and other assets (107 ) (138,578 ) (103 ) (138,788 ) Proceeds from sale of real estate — 11,652 1,477 13,129 Investment in mortgage note receivable — (65,508 ) — (65,508 ) Proceeds from mortgage note receivable paydown — 44,365 19,320 63,685 Proceeds from sale of infrastructure related to issuance of revenue bonds — 43,462 — 43,462 Proceeds from insurance recovery — 1,810 401 2,211 Proceeds from sale of investments in a direct financing lease, net — 825 — 825 Additions to property under development (25 ) (184,213 ) (2,978 ) (187,216 ) Advances to subsidiaries, net (110,593 ) 134,876 (24,283 ) — Net cash used by investing activities (110,725 ) (151,309 ) (6,166 ) (268,200 ) Financing activities: Proceeds from debt facilities 318,000 — — 318,000 Principal payments on debt (167,000 ) (25,455 ) (10,661 ) (203,116 ) Deferred financing fees paid (161 ) — (8 ) (169 ) Costs associated with loan refinancing or payoff (cash portion) — — (472 ) (472 ) Net proceeds from issuance of common shares 142,279 — — 142,279 Impact of stock option exercises, net (717 ) — — (717 ) Purchase of common shares for treasury for vesting (4,208 ) — — (4,208 ) Dividends paid to shareholders (131,701 ) — — (131,701 ) Net cash provided (used) by financing activities 156,492 (25,455 ) (11,141 ) 119,896 Effect of exchange rate changes on cash — — (49 ) (49 ) Net increase (decrease) in cash and cash equivalents 3,485 (207 ) 901 4,179 Cash and cash equivalents at beginning of the period 1,089 1,289 1,905 4,283 Cash and cash equivalents at end of the period $ 4,574 $ 1,082 $ 2,806 $ 8,462 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. In addition, operating results for the six month period ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The Company consolidates certain entities when it is deemed to be the primary beneficiary in a variable interest entity (VIE) in which it has a controlling financial interest in accordance with the consolidation guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC). The consolidated balance sheet as of December 31, 2016 has been derived from the audited consolidated balance sheet at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 filed with the Securities and Exchange Commission (SEC) on March 1, 2017. |
Operating Segments | Operating Segments For financial reporting purposes, the Company groups its investments into four reportable operating segments: Entertainment, Education, Recreation and Other. See Note 14 for financial information related to these operating segments. |
Rental Properties | Rental Properties Rental properties are carried at cost less accumulated depreciation. Costs incurred for the acquisition and development of the properties are capitalized. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which generally are estimated to be 30 to 40 years for buildings and 3 to 25 years for furniture, fixtures and equipment. Tenant improvements, including allowances, are depreciated over the shorter of the base term of the lease or the estimated useful life. Expenditures for ordinary maintenance and repairs are charged to operations in the period incurred. Significant renovations and improvements that improve or extend the useful life of the asset are capitalized and depreciated over their estimated useful life. Management reviews a property for impairment whenever events or changes in circumstances indicate that the carrying value of a property may not be recoverable. The review of recoverability is based on an estimate of undiscounted future cash flows expected to result from its use and eventual disposition. If impairment exists due to the inability to recover the carrying value of the property, an impairment loss is recorded to the extent that the carrying value of the property exceeds its estimated fair value. The Company evaluates the held-for-sale classification of its real estate as of the end of each quarter. Assets that are classified as held for sale are recorded at the lower of their carrying amount or fair value less costs to sell. Assets are generally classified as held for sale once management has initiated an active program to market them for sale and it is probable the assets will be sold within one year. On occasion, the Company will receive unsolicited offers from third parties to buy individual Company properties. Under these circumstances, the Company will classify the properties as held for sale when a sales contract is executed with no contingencies and the prospective buyer has funds at risk to ensure performance. |
Business Combinations and Other Purchase of Business Transactions, Policy [Policy Text Block] | Accounting for Acquisitions Upon acquisition of real estate properties, the Company evaluates the acquisition to determine if it will be accounted for as business combination or an asset acquisition. In January 2017, the FASB issued Accounting Standards Update (ASU) No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . The update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether acquisitions should be accounted for as business combinations or asset acquisitions. The standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those fiscal years, with early application of the guidance permitted. The Company has elected to early adopt ASU No. 2017-01 as of January 1, 2017. As a result, the Company expects that fewer of its real estate acquisitions will be accounted for as business combinations. Costs incurred for asset acquisitions and development properties, including transaction costs, are capitalized. For asset acquisitions, the Company allocates the purchase price and other related costs incurred to the real estate assets acquired based on recent independent appraisals or methods similar to those used by independent appraisers and management judgment. Acquisition-related costs in connection with business combinations are expensed as incurred. Costs related to such transactions, as well as costs associated with terminated transactions, are included in the accompanying consolidated statements of income as transaction costs. |
Deferred Charges, Policy [Policy Text Block] | Deferred Financing Costs Deferred financing costs are amortized over the terms of the related debt obligations or mortgage note receivable as applicable. Deferred financing costs of $34.1 million and $29.3 million as of June 30, 2017 and December 31, 2016, respectively, are shown as a reduction of debt. The deferred financing costs related to the unsecured revolving credit facility are included in other assets. |
Allowance For Doubtful Accounts | Allowance for Doubtful Accounts Accounts receivable is reduced by an allowance for amounts where collection is not probable. The Company’s accounts receivable balance is comprised primarily of rents and operating cost recoveries due from tenants as well as accrued rental rate increases to be received over the life of the existing leases. The Company regularly evaluates the adequacy of its allowance for doubtful accounts. The evaluation primarily consists of reviewing past due account balances and considering such factors as the credit quality of the Company’s tenants, historical trends of the tenant and/or other debtor, current economic conditions and changes in customer payment terms. Additionally, with respect to tenants in bankruptcy, the Company estimates the expected recovery through bankruptcy claims and increases the allowance for amounts deemed uncollectible. These estimates have a direct impact on the Company's net income. |
Revenue Recognition | Revenue Recognition Rents that are fixed and determinable are recognized on a straight-line basis over the minimum term of the leases. Base rent escalation on leases that are dependent upon increases in the Consumer Price Index (CPI) is recognized when known. In addition, most of the Company's tenants are subject to additional rents if gross revenues of the properties exceed certain thresholds defined in the lease agreements (percentage rents). Percentage rents as well as participating interest for those mortgage agreements that contain similar such clauses are recognized at the time when specific triggering events occur as provided by the lease or mortgage agreements. Rental revenue included percentage rents of $2.5 million and $1.0 million for the six months ended June 30, 2017 and 2016 , respectively. For the six months ended June 30, 2016 , mortgage and other financing income included a $3.6 million prepayment fee related to a mortgage note that was paid fully in advance of its maturity date. Direct financing lease income is recognized on the effective interest method to produce a level yield on funds not yet recovered. Estimated unguaranteed residual values at the date of lease inception represent management's initial estimates of fair value of the leased assets at the expiration of the lease, not to exceed original cost. Significant assumptions used in estimating residual values include estimated net cash flows over the remaining lease term and expected future real estate values. The Company evaluates on an annual basis (or more frequently, if necessary) the collectability of its direct financing lease receivable and unguaranteed residual value to determine whether they are impaired. A direct financing lease receivable is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the existing contractual terms. When a direct financing lease receivable is considered to be impaired, the amount of loss is calculated by comparing the recorded investment to the value determined by discounting the expected future cash flows at the direct financing lease receivable's effective interest rate or to the fair value of the underlying collateral, less costs to sell, if such receivable is collateralized. |
Mortgage Notes And Other Notes Receivable | Mortgage Notes and Other Notes Receivable Mortgage notes and other notes receivable, including related accrued interest receivable, consist of loans originated by the Company and the related accrued and unpaid interest income as of the balance sheet date. Mortgage notes and other notes receivable are initially recorded at the amount advanced to the borrower and the Company defers certain loan origination and commitment fees, net of certain origination costs, and amortizes them over the term of the related loan. Interest income on performing loans is accrued as earned. The Company evaluates the collectability of both interest and principal of each of its loans to determine whether it is impaired. A loan is considered to be impaired when, based on current information and events, the Company determines that it is probable that it will be unable to collect all amounts due according to the existing contractual terms. An insignificant delay or shortfall in amounts of payments does not necessarily result in the loan being identified as impaired. When a loan is considered to be impaired, the amount of loss, if any, is calculated by comparing the recorded investment to the value determined by discounting the expected future cash flows at the loan’s effective interest rate or to the fair value of the Company’s interest in the underlying collateral, less costs to sell, if the loan is collateral dependent. For impaired loans, interest income is recognized on a cash basis, unless the Company determines based on the loan to estimated fair value ratio the loan should be on the cost recovery method, and any cash payments received would then be reflected as a reduction of principal. Interest income recognition is recommenced if and when the impaired loan becomes contractually current and performance is demonstrated to be resumed. |
Concentrations Of Risk | Concentrations of Risk On December 21, 2016, American Multi-Cinema, Inc. (AMC) announced that it closed its acquisition of Carmike Cinemas Inc. (Carmike). Including the effects of this acquisition, AMC was the lessee of a substantial portion ( 35% ) of the megaplex theatre rental properties held by the Company at June 30, 2017 . For the six months ended June 30, 2017 , approximately $57.6 million or 20.8% of the Company's total revenues were derived from rental payments by AMC. For the six months ended June 30, 2016 , approximately $43.6 million or 18.4% of the Company's total revenues were derived from rental payments by AMC and approximately $9.9 million or 4.2% of the Company's total revenues were derived from rental payments by Carmike. These rental payments are from AMC under the leases, or from its parent, AMC Entertainment, Inc. (AMCE), as the guarantor of AMC’s obligations under the leases. AMCE is wholly owned by AMC Entertainment Holdings, Inc. (AMCEH). AMCEH is a publicly held company (NYSE: AMC) and its consolidated financial information is publicly available at www.sec.gov. |
Share-Based Compensation | Share-Based Compensation Share-based compensation to employees of the Company is granted pursuant to the Company's Annual Incentive Program and Long-Term Incentive Plan and share-based compensation to non-employee Trustees of the Company is granted pursuant to the Company's Trustee compensation program. Prior to May 12, 2016, share-based compensation granted to employees and non-employee Trustees were issued under the 2007 Equity Incentive Plan. The 2016 Equity Incentive Plan was approved by shareholders at the May 11, 2016 annual shareholder meeting and this plan replaced the 2007 Equity Incentive Plan. Accordingly, all share-based compensation granted on or after May 12, 2016 has been issued under the 2016 Equity Incentive Plan. Share-based compensation expense consists of share option expense and amortization of nonvested share grants issued to employees, and amortization of share units issued to non-employee Trustees for payment of their annual retainers. Share-based compensation included in general and administrative expense in the accompanying consolidated statements of income totaled $7.0 million and $5.5 million for the six months ended June 30, 2017 and 2016 , respectively. |
Share Options | Share Options Share options are granted to employees pursuant to the Long-Term Incentive Plan. The fair value of share options granted is estimated at the date of grant using the Black-Scholes option pricing model. Share options granted to employees vest over a period of four years and share option expense for these options is recognized on a straight-line basis over the vesting period. Expense recognized related to share options and included in general and administrative expense in the accompanying consolidated statements of income was $361 thousand and $460 thousand for the six months ended June 30, 2017 and 2016 , respectively. |
Nonvested Shares Issued To Employees | Nonvested Shares Issued to Employees The Company grants nonvested shares to employees pursuant to both the Annual Incentive Program and the Long-Term Incentive Plan. The Company amortizes the expense related to the nonvested shares awarded to employees under the Long-Term Incentive Plan and the premium awarded under the nonvested share alternative of the Annual Incentive Program on a straight-line basis over the future vesting period ( three or four years). Expense recognized related to nonvested shares and included in general and administrative expense in the accompanying consolidated statements of income was $6.0 million and $4.5 million for the six months ended June 30, 2017 and 2016 , respectively. |
Restricted Share Units Issued To Non-Employee Trustees | Restricted Share Units Issued to Non-Employee Trustees The Company issues restricted share units to non-employee Trustees for payment of their annual retainers under the Company's Trustee compensation program. The fair value of the share units granted was based on the share price at the date of grant. The share units vest upon the earlier of the day preceding the next annual meeting of shareholders or a change of control. The settlement date for the shares is selected by the non-employee Trustee, and ranges from one year from the grant date to upon termination of service. This expense is amortized by the Company on a straight-line basis over the year of service by the non-employee Trustees. Total expense recognized related to shares issued to non-employee Trustees was $599 thousand and $533 thousand for the six months ended June 30, 2017 and 2016 , respectively. |
Derivative Instruments | Derivative Instruments The Company has acquired certain derivative instruments to reduce exposure to fluctuations in foreign currency exchange rates and variable interest rates. The Company has established policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. These derivatives consist of foreign currency forward contracts, cross-currency swaps and interest rate swaps. The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company's policy is to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. |
New Accounting Pronouncements, Policy [Policy Text Block] | Impact of Recently Issued Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In April 2015, the FASB voted for a one-year deferral of the effective date of the new revenue recognition standard which was approved in July 2015. In February 2017, the FASB issued ASU No. 2017-05, Other Income: Gains and Losses from the Derecognition of Nonfinancial Assets . ASU No. 2017-05 provides guidance on how entities recognize sales, including partial sales, of nonfinancial assets (and in-substance nonfinancial assets) to noncustomers. ASU No. 2017-05 requires the seller to recognize a full gain or loss in a partial sale of nonfinancial assets, to the extent control is not retained. Any noncontrolling interest retained by the seller would, accordingly, be measured at fair value. Both ASU No. 2014-09 and 2017-05 will become effective for the Company beginning with the first quarter 2018. The standards permit the use of either the full retrospective method or the modified retrospective method. The Company anticipates it will use the modified retrospective method for transition under both standards, in which case the cumulative effect of applying the standards, if any, would be recognized at the date of initial application. ASU No. 2014-09 does not apply to revenue recognition for lease contracts or mortgage and other financing income. For the six months ended June 30, 2017, 84.6% of the Company’s revenue is recognized pursuant to lease contracts and 14.7% of revenue is related to mortgage and other financing income. Based on the Company’s review of its revenue streams, the Company has identified sales of real estate as being in scope for this new standard for the first quarter of 2018. The Company does not anticipate a significant change to the timing of revenue upon adoption of this new revenue standard as rental properties have primarily been disposed of in all cash transactions with no contingencies and no future involvement in the operations . In February 2016, the FASB issued ASU No. 2016-02, Leases, which amends existing accounting standards for lease accounting and is intended to improve financial reporting related to lease transactions. The ASU will require lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Lessor accounting will remain largely unchanged from current U.S. GAAP. However, ASU No. 2016-02 is expected to impact the Company’s consolidated financial statements as the Company has certain operating land leases and other arrangements for which it is the lessee and will be required to recognize these arrangements on the financial statements. The ASU will become effective for the Company for interim and annual reporting periods in fiscal years beginning after December 15, 2018. The Company expects to adopt the new standard on its effective date. A modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company has assembled an implementation team and is currently beginning the assessment of the impact that ASU No. 2016-02 will have on its consolidated financial statements and related disclosures. The Company does not expect a significant change in its leasing activity between now and adoption. The Company believes substantially all of its leases will continue to be classified as operating leases under the new standard. Subsequent to the adoption of the new standard, common area maintenance provided in lease contracts will be accounted for as a non-lease component within the scope of the new revenue standard. As a result, the Company will be required to recognize revenues associated with leases separately from revenues associated with common area maintenance. The Company is continuing to evaluate whether the variable payment provisions in the new lease standard or the allocation and recognition provisions of the new revenue standard will affect the timing of recognition of lease and non-lease revenue. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, which amends ASC Topic 326, Financial Instruments - Credit Losses. The standard changes the methodology for measuring credit losses on financial instruments and timing of when such losses are recorded. ASU No. 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, which amends ASC Topic 230, Statement of Cash Flows. The standard clarifies the treatment of several cash flow issues with the objective of reducing diversity in practice. ASU No. 2016-15 is effective for fiscal years beginning after December 15, 2017. The Company is currently reviewing the ASU to assess the potential impact on its consolidated financial statements and related disclosures but does not anticipate that this ASU will have a material impact. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows , which amends ASC Topic 230, Statement of Cash Flows. The standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. ASU No. 2016-18 is effective for fiscal years beginning after December 15, 2017. The Company is currently reviewing the ASU to assess the potential impact on its consolidated financial statements and related disclosures but does not anticipate that this ASU will have a material impact. The primary change will be to include restricted cash in cash and cash equivalents. In February 2017, the FASB issued ASU No. 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets, which amends ASC Topic 610-20. This standard clarifies the scope of asset derecognition and adds further guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. ASU No. 2017-05 is effective for fiscal years beginning after December 15, 2017. The Company is currently reviewing the ASU to assess the potential impact on its consolidated financial statements and related disclosures but does not anticipate that this ASU will have a material impact. |
Rental Properties (Tables)
Rental Properties (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Real Estate [Abstract] | |
Summary Of Carrying Amounts Of Rental Properties | The following table summarizes the carrying amounts of rental properties as of June 30, 2017 and December 31, 2016 (in thousands): June 30, 2017 December 31, 2016 Buildings and improvements $ 3,800,488 $ 3,272,865 Furniture, fixtures & equipment 84,463 40,684 Land 1,054,524 917,748 Leasehold interests 25,774 — 4,965,249 4,231,297 Accumulated depreciation (676,364 ) (635,535 ) Total $ 4,288,885 $ 3,595,762 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounts Receivable, Net [Abstract] | |
Schedule Of Accounts Receivable | The following table summarizes the carrying amounts of accounts receivable, net as of June 30, 2017 and December 31, 2016 (in thousands): June 30, December 31, Receivable from tenants $ 15,822 $ 7,564 Receivable from non-tenants 76 497 Receivable from insurance proceeds 782 1,967 Receivable from Sullivan County Infrastructure Revenue Bonds 18,959 22,164 Straight-line rent receivable 71,925 67,618 Allowance for doubtful accounts (1,084 ) (871 ) Total $ 106,480 $ 98,939 |
Investments In Direct Financi26
Investments In Direct Financing Lease (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Capital Leases, Net Investment in Direct Financing Leases [Abstract] | |
Summary Of Carrying Amounts Of Investments In Direct Financing Leases, Net | The following table summarizes the carrying amounts of investment in a direct financing lease, net as of June 30, 2017 and December 31, 2016 (in thousands): June 30, 2017 December 31, 2016 Total minimum lease payments receivable $ 210,375 $ 215,753 Estimated unguaranteed residual value of leased assets 82,350 85,247 Less deferred income (1) (192,120 ) (198,302 ) Less allowance for lease losses (7,298 ) — Investment in a direct financing lease, net $ 93,307 $ 102,698 (1) Deferred income is net of $1.3 million of initial direct costs at June 30, 2017 and December 31, 2016 . |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Summary of Derivative Instruments [Abstract] | |
Summary Of The Effect Of Derivative Instruments On The Consolidated Statements Of Changes In Equity And Income | Below is a summary of the effect of derivative instruments on the consolidated statements of changes in equity and income for the three and six months ended June 30, 2017 and 2016 . Effect of Derivative Instruments on the Consolidated Statements of Changes in Equity and Income for the Three and Six Months Ended June 30, 2017 and 2016 (Dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, Description 2017 2016 2017 2016 Interest Rate Swaps Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) $ (297 ) $ (1,769 ) $ 207 $ (6,626 ) Amount of Expense Reclassified from AOCI into Earnings (Effective Portion) (1) (913 ) (1,339 ) (1,984 ) (2,653 ) Cross Currency Swaps Amount of Loss Recognized in AOCI on Derivative (Effective Portion) (209 ) (88 ) (375 ) (1,438 ) Amount of Income Reclassified from AOCI into Earnings (Effective Portion) (2) 697 595 1,359 1,314 Currency Forward Agreements Amount of Loss Recognized in AOCI on Derivative (Effective Portion) (3,166 ) (31 ) (4,715 ) (7,554 ) Amount of Income Reclassified from AOCI into Earnings (Effective Portion) — — — — Total Amount of Loss Recognized in AOCI on Derivative (Effective Portion) $ (3,672 ) $ (1,888 ) $ (4,883 ) $ (15,618 ) Amount of Expense Reclassified from AOCI into Earnings (Effective Portion) (216 ) (744 ) (625 ) (1,339 ) (1) Included in "Interest expense, net" in the accompanying consolidated statements of income for the three and six months ended June 30, 2017 and 2016 . (2) Included in "Other income" in the accompanying consolidated statements of income for the three and six months ended June 30, 2017 and 2016 . |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets Measured At Fair Value On A Recurring Basis | The table below presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016 aggregated by the level in the fair value hierarchy within which those measurements are classified and by derivative type. Assets and Liabilities Measured at Fair Value on a Recurring Basis at June 30, 2017 and December 31, 2016 (Dollars in thousands) Description Quoted Prices in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets (Liabilities) Balance at end of period June 30, 2017 Cross-Currency Swaps* $ — $ 2,424 $ — $ 2,424 Currency Forward Agreements* $ — $ 27,067 $ — $ 27,067 Interest Rate Swap Agreements** $ — $ (290 ) $ — $ (290 ) December 31, 2016: Cross-Currency Swaps* $ — $ 4,158 $ — $ 4,158 Currency Forward Agreements* $ — $ 31,782 $ — $ 31,782 Interest Rate Swap Agreements** $ — $ (2,482 ) $ — $ (2,482 ) *Included in "Other assets" in the accompanying consolidated balance sheets. **Included in "Accounts payable and accrued liabilities" in the accompanying consolidated balance sheets. |
Assets And Liabilities Measured At Fair Value On A Non-Recurring Basis | Non-recurring fair value measurements The table below presents the Company's assets measured at fair value on a non-recurring basis during the six months ended June 30, 2017 aggregated by the level in the fair value hierarchy within which those measurements fall. Assets Measured at Fair Value on a Non-Recurring Basis During the Six Months Ended June 30, 2017 (Dollars in thousands) Description Quoted Prices in Significant Significant Balance at June 30, 2017 Investment in a direct financing lease, net $ — $ — $ 35,807 $ 35,807 As discussed further in Note 6, during the three months ended June 30, 2017, the Company recorded impairment charges totaling $10.2 million related to its investment in a direct financing lease, net. Management estimated the fair values of this investment taking into account various factors including independent appraisals, input from an outside broker and current market conditions. The Company determined, based on the inputs, that its valuation of the investment was classified within Level 3 of the fair value hierarchy as many of the assumptions are not observable. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Computation Of Basic And Diluted Earnings Per Share | The following table summarizes the Company’s computation of basic and diluted earnings per share (EPS) for the three and six months ended June 30, 2017 and 2016 (amounts in thousands except per share information): Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Income (numerator) Shares (denominator) Per Share Amount Income Shares Per Share Basic EPS: Income from continuing operations $ 80,535 $ 134,451 Less: preferred dividend requirements (5,952 ) (11,904 ) Net income available to common shareholders $ 74,583 73,159 $ 1.02 $ 122,547 68,621 $ 1.79 Diluted EPS: Net income available to common shareholders $ 74,583 73,159 $ 122,547 68,621 Effect of dilutive securities: Share options — 66 — 68 Net income available to common shareholders $ 74,583 73,225 $ 1.02 $ 122,547 68,689 $ 1.78 Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Income Shares Per Share Income Shares Per Share Basic EPS: Income from continuing operations $ 55,135 $ 109,315 Less: preferred dividend requirements (5,952 ) (11,904 ) Net income available to common shareholders $ 49,183 63,592 $ 0.77 $ 97,411 63,128 $ 1.54 Diluted EPS: Net income available to common shareholders $ 49,183 63,592 $ 97,411 63,128 Effect of dilutive securities: Share options — 86 — 85 Net income available to common shareholders $ 49,183 63,678 $ 0.77 $ 97,411 63,213 $ 1.54 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Share-based Compensation [Abstract] | |
Summary Of Share Option Activity | A summary of the Company’s share option activity and related information is as follows: Number of options Option price per share Weighted avg. exercise price Outstanding at December 31, 2016 285,986 $ 19.02 — $ 61.79 $ 51.93 Exercised (28,175 ) 46.86 — 61.79 54.74 Granted 2,215 76.63 — 76.63 76.63 Forfeited/Expired (1,342 ) 51.64 — 60.03 59.52 Outstanding at June 30, 2017 258,684 $ 19.02 — $ 76.63 $ 51.80 |
Summary Of Outstanding Options | The following table summarizes outstanding options at June 30, 2017 : Exercise price range Options outstanding Weighted avg. life remaining Weighted avg. exercise price Aggregate intrinsic value (in thousands) $ 19.02 - 19.99 11,097 1.9 20.00 - 29.99 — — 30.00 - 39.99 1,428 2.5 40.00 - 49.99 86,913 4.6 50.00 - 59.99 75,995 6.3 60.00 - 69.99 81,036 7.6 70.00 - 76.63 2,215 9.7 258,684 6.0 $ 51.80 $ 5,202 |
Summary Of Exercisable Options | The following table summarizes exercisable options at June 30, 2017 : Exercise price range Options outstanding Weighted avg. life remaining Weighted avg. exercise price Aggregate intrinsic value (in thousands) $ 19.02 - 19.99 11,097 1.9 20.00 - 29.99 — — 30.00 - 39.99 1,428 2.5 40.00 - 49.99 86,913 4.6 50.00 - 59.99 51,332 6.2 60.00 - 69.99 38,375 7.6 70.00 - 76.63 — — 189,145 5.5 $ 49.28 $ 4,273 |
Summary Of Nonvested Share Activity | A summary of the Company’s nonvested share activity and related information is as follows: Number of shares Weighted avg. grant date fair value Weighted avg. life remaining Outstanding at December 31, 2016 534,317 $ 59.22 Granted 295,754 76.53 Vested (208,822 ) 57.43 Forfeited (1,342 ) 66.88 Outstanding at June 30, 2017 619,907 $ 68.07 1.46 |
Summary Of Restricted Share Unit Activity | A summary of the Company’s restricted share unit activity and related information is as follows: Number of shares Weighted avg. grant date fair value Weighted avg. life remaining Outstanding at December 31, 2016 15,805 $ 70.93 Granted 19,030 70.91 Vested (15,805 ) 70.93 Outstanding at June 30, 2017 19,030 $ 70.91 0.83 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Operating Segments | Segment Information The Company groups investments into four reportable operating segments: Entertainment, Education, Recreation and Other. The financial information summarized below is presented by reportable operating segment: Balance Sheet Data: As of June 30, 2017 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Total Assets $ 2,200,480 $ 1,434,537 $ 1,993,713 $ 201,163 $ 108,993 $ 5,938,886 As of December 31, 2016 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Total Assets $ 2,168,669 $ 1,308,288 $ 1,120,498 $ 202,394 $ 65,173 $ 4,865,022 Operating Data: Three Months Ended June 30, 2017 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Rental revenue $ 65,462 $ 22,333 $ 29,384 $ 2,290 $ — $ 119,469 Tenant reimbursements 3,941 — — — — 3,941 Other income 606 1 — — 697 1,304 Mortgage and other financing income 1,096 8,868 13,104 — — 23,068 Total revenue 71,105 31,202 42,488 2,290 697 147,782 Property operating expense 5,545 32 29 353 113 6,072 Total investment expenses 5,545 32 29 353 113 6,072 Net operating income - before unallocated items 65,560 31,170 42,459 1,937 584 141,710 Reconciliation to Consolidated Statements of Income: General and administrative expense (10,660 ) Costs associated with loan refinancing or payoff (9 ) Gain on early extinguishment of debt 977 Interest expense, net (32,967 ) Transaction costs (218 ) Impairment charges (10,195 ) Depreciation and amortization (33,148 ) Equity in income from joint ventures 59 Gain on sale of real estate 25,461 Income tax expense (475 ) Net income 80,535 Preferred dividend requirements (5,952 ) Net income available to common shareholders of EPR Properties $ 74,583 Operating Data: Three Months Ended June 30, 2016 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Rental revenue $ 61,258 $ 17,717 $ 14,789 $ 2,291 $ — $ 96,055 Tenant reimbursements 3,891 — — — — 3,891 Other income 210 — 1,321 — 595 2,126 Mortgage and other financing income 1,481 7,178 7,268 34 — 15,961 Total revenue 66,840 24,895 23,378 2,325 595 118,033 Property operating expense 5,335 — — 103 142 5,580 Total investment expenses 5,335 — — 103 142 5,580 Net operating income - before unallocated items 61,505 24,895 23,378 2,222 453 112,453 Reconciliation to Consolidated Statements of Income: General and administrative expense (9,000 ) Costs associated with loan refinancing or payoff (339 ) Interest expense, net (22,756 ) Transaction costs (1,490 ) Depreciation and amortization (25,666 ) Equity in income from joint ventures 86 Gain on sale of real estate 2,270 Income tax expense (423 ) Net income 55,135 Preferred dividend requirements (5,952 ) Net income available to common shareholders of EPR Properties $ 49,183 Operating Data: Six Months Ended June 30, 2017 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Rental revenue $ 130,553 $ 44,690 $ 46,683 $ 4,580 $ — $ 226,506 Tenant reimbursements 7,690 — — — — 7,690 Other income 612 1 — — 1,383 1,996 Mortgage and other financing income 2,275 17,417 21,010 — — 40,702 Total revenue 141,130 62,108 67,693 4,580 1,383 276,894 Property operating expense 11,380 32 57 693 260 12,422 Total investment expenses 11,380 32 57 693 260 12,422 Net operating income - before unallocated items 129,750 62,076 67,636 3,887 1,123 264,472 Reconciliation to Consolidated Statements of Income: General and administrative expense (21,717 ) Costs associated with loan refinancing or payoff (14 ) Gain on early extinguishment of debt 977 Interest expense, net (63,659 ) Transaction costs (275 ) Impairment charges (10,195 ) Depreciation and amortization (61,225 ) Equity in income from joint ventures 51 Gain on sale of real estate 27,465 Income tax expense (1,429 ) Net income 134,451 Preferred dividend requirements (11,904 ) Net income available to common shareholders of EPR Properties $ 122,547 Operating Data: Six Months Ended June 30, 2016 Entertainment Education Recreation Other Corporate/Unallocated Consolidated Rental revenue $ 121,396 $ 34,897 $ 29,485 $ 4,055 $ — $ 189,833 Tenant reimbursements 7,754 2 — — — 7,756 Other income 214 — 1,810 — 1,312 3,336 Mortgage and other financing income 3,633 17,909 14,266 68 — 35,876 Total revenue 132,997 52,808 45,561 4,123 1,312 236,801 Property operating expense 10,587 — 8 186 280 11,061 Other expense — — — 5 — 5 Total investment expenses 10,587 — 8 191 280 11,066 Net operating income - before unallocated items 122,410 52,808 45,553 3,932 1,032 225,735 Reconciliation to Consolidated Statements of Income: General and administrative expense (18,218 ) Costs associated with loan refinancing or payoff (891 ) Interest expense, net (46,045 ) Transaction costs (1,934 ) Depreciation and amortization (51,621 ) Equity in income from joint ventures 298 Gain on sale of real estate 2,270 Income tax expense (279 ) Net income 109,315 Preferred dividend requirements (11,904 ) Net income available to common shareholders of EPR Properties $ 97,411 |
Condensed Consolidating Finan32
Condensed Consolidating Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Condensed Consolidating Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet As of June 30, 2017 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Assets Rental properties, net $ — $ 3,394,620 $ 894,265 $ — $ 4,288,885 Land held for development — 12,400 21,272 — 33,672 Property under development 2 227,534 44,156 — 271,692 Mortgage notes and related accrued interest receivable — 936,219 5,380 — 941,599 Investment in a direct financing lease, net — 93,307 — — 93,307 Investment in joint ventures — — 5,581 — 5,581 Cash and cash equivalents 65,428 3,858 1,586 — 70,872 Restricted cash 1,400 22,515 340 — 24,255 Accounts receivable, net 710 93,920 11,850 — 106,480 Intercompany notes receivable — 179,589 — (179,589 ) — Investments in subsidiaries 5,634,271 — — (5,634,271 ) — Other assets 22,804 23,861 55,878 — 102,543 Total assets $ 5,724,615 $ 4,987,823 $ 1,040,308 $ (5,813,860 ) $ 5,938,886 Liabilities and Equity Liabilities: Accounts payable and accrued liabilities $ 61,349 $ 64,417 $ 16,760 $ — $ 142,526 Dividends payable 30,996 — — — 30,996 Unearned rents and interest — 64,956 6,142 — 71,098 Intercompany notes payable — — 179,589 (179,589 ) — Debt 2,730,924 — 61,996 — 2,792,920 Total liabilities 2,823,269 129,373 264,487 (179,589 ) 3,037,540 Total equity 2,901,346 4,858,450 775,821 (5,634,271 ) 2,901,346 Total liabilities and equity $ 5,724,615 $ 4,987,823 $ 1,040,308 $ (5,813,860 ) $ 5,938,886 Condensed Consolidating Balance Sheet As of December 31, 2016 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Assets Rental properties, net $ — $ 3,164,622 $ 431,140 $ — $ 3,595,762 Land held for development — 1,258 21,272 — 22,530 Property under development 1,010 247,239 48,861 — 297,110 Mortgage notes and related accrued interest receivable — 612,141 1,837 — 613,978 Investment in a direct financing lease, net — 102,698 — — 102,698 Investment in joint ventures — — 5,972 — 5,972 Cash and cash equivalents 16,586 1,157 1,592 — 19,335 Restricted cash 365 8,352 1,027 — 9,744 Accounts receivable, net 556 89,145 9,238 — 98,939 Intercompany notes receivable — 179,589 — (179,589 ) — Investments in subsidiaries 4,521,095 — — (4,521,095 ) — Other assets 21,768 23,068 54,118 — 98,954 Total assets $ 4,561,380 $ 4,429,269 $ 575,057 $ (4,700,684 ) $ 4,865,022 Liabilities and Equity Liabilities: Accounts payable and accrued liabilities $ 63,431 $ 52,061 $ 4,266 $ — $ 119,758 Dividends payable 26,318 — — — 26,318 Unearned rents and interest — 46,647 773 — 47,420 Intercompany notes payable — — 179,589 (179,589 ) — Debt 2,285,730 — 199,895 — 2,485,625 Total liabilities 2,375,479 98,708 384,523 (179,589 ) 2,679,121 Total equity 2,185,901 4,330,561 190,534 (4,521,095 ) 2,185,901 Total liabilities and equity $ 4,561,380 $ 4,429,269 $ 575,057 $ (4,700,684 ) $ 4,865,022 |
Condensed Consolidating Statement Of Income | Condensed Consolidating Statement of Income Three Months Ended June 30, 2017 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Rental revenue $ — $ 95,048 $ 24,421 $ — $ 119,469 Tenant reimbursements — 1,440 2,501 — 3,941 Other income — 607 697 — 1,304 Mortgage and other financing income 232 22,771 65 — 23,068 Intercompany fee income 678 — — (678 ) — Interest income on intercompany notes receivable — 2,411 — (2,411 ) — Total revenue 910 122,277 27,684 (3,089 ) 147,782 Equity in subsidiaries’ earnings 115,062 — — (115,062 ) — Property operating expense — 3,060 3,012 — 6,072 Intercompany fee expense — — 678 (678 ) — General and administrative expense — 8,688 1,972 — 10,660 Costs associated with loan refinancing or payoff — — 9 — 9 Gain on early extinguishment of debt — — (977 ) — (977 ) Interest expense, net 34,602 (2,461 ) 826 — 32,967 Interest expense on intercompany notes payable — — 2,411 (2,411 ) — Transaction costs 218 — — — 218 Impairment charges — 10,195 — — 10,195 Depreciation and amortization 237 25,236 7,675 — 33,148 Income before equity in income from joint ventures and other items 80,915 77,559 12,078 (115,062 ) 55,490 Equity in income from joint ventures — — 59 — 59 Gain on sale of real estate — 24,343 1,118 — 25,461 Income before income taxes 80,915 101,902 13,255 (115,062 ) 81,010 Income tax expense (380 ) — (95 ) — (475 ) Net income 80,535 101,902 13,160 (115,062 ) 80,535 Preferred dividend requirements (5,952 ) — — — (5,952 ) Net income available to common shareholders of EPR Properties $ 74,583 $ 101,902 $ 13,160 $ (115,062 ) $ 74,583 Comprehensive income $ 81,627 $ 101,902 $ 13,635 $ (115,537 ) $ 81,627 Condensed Consolidating Statement of Income Three Months Ended June 30, 2016 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Rental revenue $ — $ 82,393 $ 13,662 $ — $ 96,055 Tenant reimbursements — 1,372 2,519 — 3,891 Other income — 1,329 797 — 2,126 Mortgage and other financing income 212 15,659 90 — 15,961 Intercompany fee income 688 — — (688 ) — Interest income on intercompany notes receivable — 2,500 — (2,500 ) — Total revenue 900 103,253 17,068 (3,188 ) 118,033 Equity in subsidiaries’ earnings 78,883 — — (78,883 ) — Property operating expense — 2,555 3,025 — 5,580 Intercompany fee expense — — 688 (688 ) — Other expense — — — — — General and administrative expense — 7,718 1,282 — 9,000 Costs associated with loan refinancing or payoff — 339 — — 339 Interest expense, net 22,437 (1,954 ) 2,273 — 22,756 Interest expense on intercompany notes payable — — 2,500 (2,500 ) — Transaction costs 1,394 — 96 — 1,490 Depreciation and amortization 446 21,674 3,546 — 25,666 Income before equity in income from joint ventures and other items 55,506 72,921 3,658 (78,883 ) 53,202 Equity in income from joint ventures — — 86 — 86 Gain on sale of real estate — 2,270 — — 2,270 Income before income taxes 55,506 75,191 3,744 (78,883 ) 55,558 Income tax expense (371 ) — (52 ) — (423 ) Net income 55,135 75,191 3,692 (78,883 ) 55,135 Preferred dividend requirements (5,952 ) — — — (5,952 ) Net income available to common shareholders of EPR Properties $ 49,183 $ 75,191 $ 3,692 $ (78,883 ) $ 49,183 Comprehensive income $ 54,912 $ 75,191 $ 3,900 $ (79,091 ) $ 54,912 Condensed Consolidating Statement of Income Six Months Ended June 30, 2017 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Rental revenue $ — $ 188,579 $ 37,927 $ — $ 226,506 Tenant reimbursements — 2,681 5,009 — 7,690 Other income — 613 1,383 — 1,996 Mortgage and other financing income 464 40,143 95 — 40,702 Intercompany fee income 1,362 — — (1,362 ) — Interest income on intercompany notes receivable — 4,855 — (4,855 ) — Total revenue 1,826 236,871 44,414 (6,217 ) 276,894 Equity in subsidiaries’ earnings 200,104 — — (200,104 ) — Property operating expense — 6,322 6,100 — 12,422 Intercompany fee expense — — 1,362 (1,362 ) — General and administrative expense — 18,278 3,439 — 21,717 Costs associated with loan refinancing or payoff — — 14 — 14 Gain on early extinguishment of debt — — (977 ) — (977 ) Interest expense, net 66,060 (5,114 ) 2,713 — 63,659 Interest expense on intercompany notes payable — — 4,855 (4,855 ) — Transaction costs 275 — — — 275 Impairment charges — 10,195 — — 10,195 Depreciation and amortization 430 49,961 10,834 — 61,225 Income before equity in income from joint ventures and other items 135,165 157,229 16,074 (200,104 ) 108,364 Equity in income from joint ventures — — 51 — 51 Gain on sale of real estate — 26,347 1,118 — 27,465 Income before income taxes 135,165 183,576 17,243 (200,104 ) 135,880 Income tax expense (714 ) — (715 ) — (1,429 ) Net income 134,451 183,576 16,528 (200,104 ) 134,451 Preferred dividend requirements (11,904 ) — — — (11,904 ) Net income available to common shareholders of EPR Properties $ 122,547 $ 183,576 $ 16,528 $ (200,104 ) $ 122,547 Comprehensive income $ 136,415 $ 183,576 $ 16,299 $ (199,875 ) $ 136,415 Condensed Consolidating Statement of Income Six Months Ended June 30, 2016 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non- Guarantor Subsidiaries Consolidated Elimination Consolidated Rental revenue $ — $ 162,722 $ 27,111 $ — $ 189,833 Tenant reimbursements — 2,721 5,035 — 7,756 Other income — 1,820 1,516 — 3,336 Mortgage and other financing income 424 31,678 3,774 — 35,876 Intercompany fee income 1,341 — — (1,341 ) — Interest income on intercompany notes receivable — 4,836 — (4,836 ) — Total revenue 1,765 203,777 37,436 (6,177 ) 236,801 Equity in subsidiaries’ earnings 155,670 — — (155,670 ) — Property operating expense — 5,218 5,843 — 11,061 Intercompany fee expense — — 1,341 (1,341 ) — Other expense — — 5 — 5 General and administrative expense — 15,378 2,840 — 18,218 Costs associated with loan refinancing or payoff — 339 552 — 891 Interest expense, net 44,627 (3,200 ) 4,618 — 46,045 Interest expense on intercompany notes payable — — 4,836 (4,836 ) — Transaction costs 1,837 — 97 — 1,934 Depreciation and amortization 889 43,748 6,984 — 51,621 Income before equity in income from joint ventures and other items 110,082 142,294 10,320 (155,670 ) 107,026 Equity in income from joint ventures — — 298 — 298 Gain on sale of real estate — 2,270 — — 2,270 Income before income taxes 110,082 144,564 10,618 (155,670 ) 109,594 Income tax (expense) benefit (767 ) — 488 — (279 ) Net income 109,315 144,564 11,106 (155,670 ) 109,315 Preferred dividend requirements (11,904 ) — — — (11,904 ) Net income available to common shareholders of EPR Properties $ 97,411 $ 144,564 $ 11,106 $ (155,670 ) $ 97,411 Comprehensive income $ 107,178 $ 144,564 $ 12,943 $ (157,507 ) $ 107,178 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2017 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non-Guarantor Subsidiaries Consolidated Intercompany fee income (expense) $ 1,362 $ — $ (1,362 ) $ — Interest income (expense) on intercompany receivable/payable — 4,855 (4,855 ) — Net cash (used) provided by other operating activities (58,920 ) 211,488 27,702 180,270 Net cash (used) provided by operating activities (57,558 ) 216,343 21,485 180,270 Investing activities: Acquisition of rental properties and other assets (942 ) (141,528 ) (54,627 ) (197,097 ) Proceeds from sale of real estate 203 101,281 29,242 130,726 Investment in mortgage notes receivable — (97,958 ) (3,763 ) (101,721 ) Proceeds from mortgage note receivable paydown — 15,610 — 15,610 Investment in promissory notes receivable — (1,387 ) — (1,387 ) Proceeds from promissory notes receivable paydown — 1,599 — 1,599 Additions to property under development (727 ) (186,284 ) (9,343 ) (196,354 ) Advances to subsidiaries, net (248,870 ) 95,025 153,845 — Net cash (used) provided by investing activities (250,336 ) (213,642 ) 115,354 (348,624 ) Financing activities: Proceeds from debt facilities and senior unsecured notes 915,000 — — 915,000 Principal payments on debt (465,000 ) — (136,962 ) (601,962 ) Deferred financing fees paid (7,042 ) — — (7,042 ) Costs associated with loan refinancing or payoff (cash portion) — — (6 ) (6 ) Net proceeds from issuance of common shares 68,352 — — 68,352 Purchase of common shares for treasury for vesting (6,729 ) — — (6,729 ) Dividends paid to shareholders (147,845 ) — — (147,845 ) Net cash provided (used) by financing activities 356,736 — (136,968 ) 219,768 Effect of exchange rate changes on cash — — 123 123 Net increase (decrease) in cash and cash equivalents 48,842 2,701 (6 ) 51,537 Cash and cash equivalents at beginning of the period 16,586 1,157 1,592 19,335 Cash and cash equivalents at end of the period $ 65,428 $ 3,858 $ 1,586 $ 70,872 |
Condensed Consolidating Statement Of Cash Flows | Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2017 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non-Guarantor Subsidiaries Consolidated Intercompany fee income (expense) $ 1,362 $ — $ (1,362 ) $ — Interest income (expense) on intercompany receivable/payable — 4,855 (4,855 ) — Net cash (used) provided by other operating activities (58,920 ) 211,488 27,702 180,270 Net cash (used) provided by operating activities (57,558 ) 216,343 21,485 180,270 Investing activities: Acquisition of rental properties and other assets (942 ) (141,528 ) (54,627 ) (197,097 ) Proceeds from sale of real estate 203 101,281 29,242 130,726 Investment in mortgage notes receivable — (97,958 ) (3,763 ) (101,721 ) Proceeds from mortgage note receivable paydown — 15,610 — 15,610 Investment in promissory notes receivable — (1,387 ) — (1,387 ) Proceeds from promissory notes receivable paydown — 1,599 — 1,599 Additions to property under development (727 ) (186,284 ) (9,343 ) (196,354 ) Advances to subsidiaries, net (248,870 ) 95,025 153,845 — Net cash (used) provided by investing activities (250,336 ) (213,642 ) 115,354 (348,624 ) Financing activities: Proceeds from debt facilities and senior unsecured notes 915,000 — — 915,000 Principal payments on debt (465,000 ) — (136,962 ) (601,962 ) Deferred financing fees paid (7,042 ) — — (7,042 ) Costs associated with loan refinancing or payoff (cash portion) — — (6 ) (6 ) Net proceeds from issuance of common shares 68,352 — — 68,352 Purchase of common shares for treasury for vesting (6,729 ) — — (6,729 ) Dividends paid to shareholders (147,845 ) — — (147,845 ) Net cash provided (used) by financing activities 356,736 — (136,968 ) 219,768 Effect of exchange rate changes on cash — — 123 123 Net increase (decrease) in cash and cash equivalents 48,842 2,701 (6 ) 51,537 Cash and cash equivalents at beginning of the period 16,586 1,157 1,592 19,335 Cash and cash equivalents at end of the period $ 65,428 $ 3,858 $ 1,586 $ 70,872 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2016 EPR Properties (Issuer) Wholly Owned Subsidiary Guarantors Non-Guarantor Subsidiaries Consolidated Intercompany fee income (expense) $ 1,341 $ — $ (1,341 ) $ — Interest income (expense) on intercompany receivable/payable — 4,836 (4,836 ) — Net cash (used) provided by other operating activities (43,623 ) 171,721 24,434 152,532 Net cash (used) provided by operating activities (42,282 ) 176,557 18,257 152,532 Investing activities: Acquisition of rental properties and other assets (107 ) (138,578 ) (103 ) (138,788 ) Proceeds from sale of real estate — 11,652 1,477 13,129 Investment in mortgage note receivable — (65,508 ) — (65,508 ) Proceeds from mortgage note receivable paydown — 44,365 19,320 63,685 Proceeds from sale of infrastructure related to issuance of revenue bonds — 43,462 — 43,462 Proceeds from insurance recovery — 1,810 401 2,211 Proceeds from sale of investments in a direct financing lease, net — 825 — 825 Additions to property under development (25 ) (184,213 ) (2,978 ) (187,216 ) Advances to subsidiaries, net (110,593 ) 134,876 (24,283 ) — Net cash used by investing activities (110,725 ) (151,309 ) (6,166 ) (268,200 ) Financing activities: Proceeds from debt facilities 318,000 — — 318,000 Principal payments on debt (167,000 ) (25,455 ) (10,661 ) (203,116 ) Deferred financing fees paid (161 ) — (8 ) (169 ) Costs associated with loan refinancing or payoff (cash portion) — — (472 ) (472 ) Net proceeds from issuance of common shares 142,279 — — 142,279 Impact of stock option exercises, net (717 ) — — (717 ) Purchase of common shares for treasury for vesting (4,208 ) — — (4,208 ) Dividends paid to shareholders (131,701 ) — — (131,701 ) Net cash provided (used) by financing activities 156,492 (25,455 ) (11,141 ) 119,896 Effect of exchange rate changes on cash — — (49 ) (49 ) Net increase (decrease) in cash and cash equivalents 3,485 (207 ) 901 4,179 Cash and cash equivalents at beginning of the period 1,089 1,289 1,905 4,283 Cash and cash equivalents at end of the period $ 4,574 $ 1,082 $ 2,806 $ 8,462 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)segment | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Operating Segments | |||||
Number of Reportable Operating Segments | segment | 4 | ||||
Revenue Recognition [Abstract] | |||||
Percentage rents | $ 2,500 | $ 1,000 | |||
Prepaymentfee | 3,600 | ||||
Concentrations of Risk [Abstract] | |||||
Rental revenue | $ 119,469 | $ 96,055 | 226,506 | 189,833 | |
Share-based Compensation [Abstract] | |||||
Share based compensation | $ 6,961 | 5,504 | |||
Share based compensation, future vesting period minimum (in years) | 4 years | ||||
Range of settlement date for shares for non-employee trustee from grant date, minimum (in years) | 1 year | ||||
Share based compensation expense related to employees and trustees | $ 600 | ||||
Deferred Costs | $ 34,100 | $ 34,100 | $ 29,300 | ||
American Multi-Cinema, Inc. [Member] | |||||
Concentrations of Risk [Abstract] | |||||
Percent of megaplex theatre rental leased by AMC | 35.00% | ||||
Rental revenue | $ 57,600 | $ 43,600 | |||
Percentage of lease revenue in total revenue | 20.80% | 18.40% | |||
Carmike Cinemas, Inc [Member] | |||||
Concentrations of Risk [Abstract] | |||||
Rental revenue | $ 9,900 | ||||
Percentage of lease revenue in total revenue | 4.20% | ||||
Minimum [Member] | |||||
Share-based Compensation [Abstract] | |||||
Share based compensation, future vesting period minimum (in years) | 3 years | ||||
Maximum [Member] | |||||
Share-based Compensation [Abstract] | |||||
Share based compensation, future vesting period minimum (in years) | 4 years | ||||
Building [Member] | Minimum [Member] | |||||
Rental Properties [Abstract] | |||||
Estimated useful live of buildings (in years) | 30 years | ||||
Building [Member] | Maximum [Member] | |||||
Rental Properties [Abstract] | |||||
Estimated useful live of buildings (in years) | 40 years | ||||
Furniture, fixtures & equipment [Member] | Minimum [Member] | |||||
Rental Properties [Abstract] | |||||
Estimated useful live of buildings (in years) | 3 years | ||||
Furniture, fixtures & equipment [Member] | Maximum [Member] | |||||
Rental Properties [Abstract] | |||||
Estimated useful live of buildings (in years) | 25 years | ||||
Share Options [Member] | |||||
Share-based Compensation [Abstract] | |||||
Share based compensation, future vesting period minimum (in years) | 4 years | ||||
Stock-option expense | $ 361 | $ 460 | |||
Restricted Stock [Member] | |||||
Share-based Compensation [Abstract] | |||||
Share based compensation expense related to employees and trustees | $ 6,000 | 4,500 | |||
Restricted Stock [Member] | Minimum [Member] | |||||
Share-based Compensation [Abstract] | |||||
Share based compensation, future vesting period minimum (in years) | 3 years | ||||
Restricted Stock [Member] | Maximum [Member] | |||||
Share-based Compensation [Abstract] | |||||
Share based compensation, future vesting period minimum (in years) | 4 years | ||||
Restricted Share Units [Member] | |||||
Share-based Compensation [Abstract] | |||||
Range of settlement date for shares for non-employee trustee from grant date, minimum (in years) | 1 year | ||||
Restricted Share Units [Member] | Non-Employee Trustees [Member] | |||||
Share-based Compensation [Abstract] | |||||
Share based compensation expense related to employees and trustees | $ 599 | $ 533 |
Rental Properties (Summary Of C
Rental Properties (Summary Of Carrying Amounts Of Rental Properties) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Real Estate Properties [Line Items] | |||
Carrying amounts of rental properties | $ 4,965,249 | $ 4,231,297 | |
Accumulated depreciation | (676,364) | (635,535) | |
Total | 4,288,885 | 3,595,762 | |
Depreciation expense on rental properties | 59,300 | $ 49,800 | |
Building and improvements [Member] | |||
Real Estate Properties [Line Items] | |||
Carrying amounts of rental properties | 3,800,488 | 3,272,865 | |
Furniture, fixtures & equipment [Member] | |||
Real Estate Properties [Line Items] | |||
Carrying amounts of rental properties | 84,463 | 40,684 | |
Land [Member] | |||
Real Estate Properties [Line Items] | |||
Carrying amounts of rental properties | 1,054,524 | 917,748 | |
Leaseholds and Leasehold Improvements [Member] | |||
Real Estate Properties [Line Items] | |||
Carrying amounts of rental properties | $ 25,774 | $ 0 |
Investments and Dispositions (D
Investments and Dispositions (Details) | Apr. 06, 2017USD ($)properties$ / sharesshares | Mar. 30, 2017USD ($) | Jun. 30, 2017USD ($)properties | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)segmentpropertiesshares | Jun. 30, 2016USD ($) |
Real Estate Properties [Line Items] | ||||||
Rental Properties | $ 481,006,000 | |||||
Gain on sale of real estate | $ 25,461,000 | $ 2,270,000 | $ 27,465,000 | $ 2,270,000 | ||
Number of leases assumed | properties | 3 | |||||
Number of properties subject to assumed ground leases | properties | 9 | |||||
Payments to Acquire Productive Assets | 1,200,000,000 | |||||
Stock Issued During Period, Value, Acquisitions | $ 657,500,000 | 657,473,000 | ||||
Proceeds from mortgage note receivable paydown | $ 15,610,000 | 63,685,000 | ||||
Number of Reportable Operating Segments | segment | 4 | |||||
Prepaymentfee | $ 3,600,000 | |||||
Indefinite-Lived Trade Names | 6,355,000 | |||||
Below Market Lease, Net | $ (7,611,000) | |||||
Number of Properties Securing Mortgage Note | properties | 6 | 6 | ||||
Closing Price at Acquisition Date | $ / shares | $ 74.28 | |||||
Payments to Acquire Property, Plant, and Equipment | $ 61,200,000 | |||||
Noncash or Part Noncash Acquisition, Value of Liabilities Assumed | $ 12,100,000 | |||||
Education Property Member | ||||||
Real Estate Properties [Line Items] | ||||||
number of properties sold pursuant to tenant purchase option | 4 | |||||
number of properties sold | 2 | |||||
attractions [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Number of properties acquired (in properties) | properties | 15 | |||||
Proceeds from Sale of Property, Plant, and Equipment | $ 2,500,000 | |||||
number of properties sold | 1 | |||||
family entertainment center [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Number of properties acquired (in properties) | properties | 5 | |||||
Proceeds from Sale of Property, Plant, and Equipment | $ 6,800,000 | |||||
number of properties sold | 5 | |||||
attractions and family entertainment centers [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Gain on sale of real estate | $ 0 | |||||
Property, Plant and Equipment, Additions | $ 479,800,000 | |||||
Ski Resorts [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
mortgage loans on real estate term | 5 | |||||
number of extension options | 3 | |||||
Extension option term | 2 years 6 months | |||||
Mortgage Loans on Real Estate, Interest Rate | 8.50% | |||||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | $ 3,000,000 | |||||
Property, Plant and Equipment, Additions | 374,500,000 | |||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | $ 251,038,000 | |||||
Number of Properties Securing Mortgage Note | properties | 14 | |||||
Entertainment Reportable Operating Segment [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Proceeds from Sale of Property, Plant, and Equipment | $ 72,300,000 | |||||
Gain on sale of real estate | 19,400,000 | |||||
Payments to Acquire Productive Assets | $ 114,200,000 | |||||
Proceeds from mortgage note receivable paydown | $ 4,000,000 | |||||
number of properties sold | 4 | |||||
Prepaymentfee | $ 800,000 | |||||
Entertainment Reportable Operating Segment [Member] | Theatre Properties [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Number of properties acquired (in properties) | 3 | |||||
Payments to Acquire Productive Assets | $ 47,900,000 | |||||
Education Reportable Operating Segment [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Payments to Acquire Productive Assets | $ 182,200,000 | |||||
Education Reportable Operating Segment [Member] | Education Property Member | ||||||
Real Estate Properties [Line Items] | ||||||
Number of properties acquired (in properties) | 1 | |||||
Proceeds from Sale of Property, Plant, and Equipment | $ 9,800,000 | |||||
Gain on sale of real estate | 1,900,000 | |||||
Proceeds from sale of property, plant, and equipment tenant purchase option | 39,100,000 | |||||
Gain (Loss) on disposition of assets from tenant purchase option | $ 6,200,000 | |||||
Education Reportable Operating Segment [Member] | early childhood education center [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Number of properties acquired (in properties) | 7 | |||||
Payments to Acquire Productive Assets | $ 27,000,000 | |||||
Recreation Reportable Operating Segment [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Payments to Acquire Productive Assets | 866,100,000 | |||||
Recreation Reportable Operating Segment [Member] | Ski Resorts, Attractions and Family Entertainment Centers [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Payments to Acquire Productive Assets | $ 730,800,000 | $ 730,788,000 | ||||
Recreation Reportable Operating Segment [Member] | Other Recreation [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Number of properties acquired (in properties) | 3 | |||||
Payments to Acquire Productive Assets | $ 34,200,000 | |||||
Recreation Reportable Operating Segment [Member] | fitness center [Member] [Domain] | ||||||
Real Estate Properties [Line Items] | ||||||
Payments to Acquire Productive Assets | 10,500,000 | |||||
Other Reportable Operating Segment [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Payments to Acquire Productive Assets | $ 800,000 | |||||
Mortgage Receivable [Member] | Education Property Member | ||||||
Real Estate Properties [Line Items] | ||||||
Mortgage Notes, Additional Funding | $ 70,500,000 | |||||
Common Stock [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Stock Issued During Period, Shares, Acquisitions | shares | 8,851,264 | 8,851,264 | ||||
Stock Issued During Period, Value, Acquisitions | $ 89,000 |
Accounts Receivable, Net (Sched
Accounts Receivable, Net (Schedule Of Accounts Receivable) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Insurance Settlements Receivable | $ 782 | $ 1,967 |
Revenue Bond Receivable | 18,959 | 22,164 |
Straight-line rent receivable | 71,925 | 67,618 |
Allowance for doubtful accounts | (1,084) | (871) |
Total | 106,480 | 98,939 |
Tenants [Member] | ||
Carrying amounts of accounts receivable | 15,822 | 7,564 |
Non-Tenants [Member] | ||
Carrying amounts of accounts receivable | $ 76 | $ 497 |
Investments In Direct Financi37
Investments In Direct Financing Lease (Narrative) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017USD ($)properties | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)properties | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($)properties | |
Investment in a direct financing lease, net | $ 93,307,000 | $ 93,307,000 | $ 102,698,000 | ||
Capital Leases, Net Investment in Direct Financing Leases, Initial Direct Costs | 1,300,000 | 1,300,000 | 1,300,000 | ||
Asset Impairment Charges | $ 10,195,000 | $ 0 | $ 10,195,000 | $ 0 | |
Allowance for lease losses | $ 0 | ||||
Future Minimum Rentals Receivable | The Company’s direct financing lease has expiration dates ranging from approximately 15 to 18 years. Future minimum rentals receivable on this direct financing lease at June 30, 2017 are as follows (in thousands): Amount Year: 2017 $ 5,479 2018 11,182 2019 11,517 2020 11,863 2021 12,219 Thereafter 158,115 Total $ 210,375 | ||||
Imagine Schools Member | |||||
Number of properties subject to lease amendment | 6 | 6 | |||
Asset Impairment Charges | $ 9,600,000 | ||||
Number of public charter school properties (in properties) | properties | 12 | 12 | 12 | ||
Allowance for lease losses | $ 7,300,000 | ||||
Tangible Asset Impairment Charges | 2,300,000 | ||||
Imagine Madison Avenue [Member] | Imagine Schools Member | |||||
Tangible Asset Impairment Charges | $ 600,000 |
Investments In Direct Financi38
Investments In Direct Financing Lease (Summary Of Carrying Amounts Of Investment In Direct Financing Lease, Net) (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2017USD ($)years | Dec. 31, 2016USD ($) | ||
Total minimum lease payments receivable | $ 210,375 | $ 215,753 | |
Estimated unguaranteed residual value of leased assets | 82,350 | 85,247 | |
Less deferred income | [1] | (192,120) | (198,302) |
Loans and Leases Receivable, Allowance | 7,298 | 0 | |
Investment in a direct financing lease, net | 93,307 | 102,698 | |
Capital Leases, Net Investment in Direct Financing Leases, Initial Direct Costs | $ 1,300 | $ 1,300 | |
Minimum [Member] | |||
Length of lease (in years) | years | 15 | ||
Maximum [Member] | |||
Length of lease (in years) | years | 18 | ||
[1] | Deferred income is net of $1.3 million of initial direct costs at June 30, 2017 and December 31, 2016. |
Investments In Direct Financi39
Investments In Direct Financing Lease (Future Minimum Rentals Receivable) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Capital Leases, Net Investment in Direct Financing Leases [Abstract] | ||
2,017 | $ 5,479 | |
2,018 | 11,182 | |
2,019 | 11,517 | |
2,020 | 11,863 | |
2,021 | 12,219 | |
Thereafter | 158,115 | |
Total | $ 210,375 | $ 215,753 |
Debt and Capital Markets (Sched
Debt and Capital Markets (Schedule of Long-term Debt Instruments) (Details) | Jul. 07, 2017USD ($) | Apr. 06, 2017shares | Apr. 05, 2017USD ($) | Jun. 30, 2017USD ($)loanspropertiesshares | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)loanspropertiesshares | Jun. 30, 2016USD ($) | Jul. 03, 2017USD ($)properties | May 23, 2017USD ($) | Dec. 31, 2016shares |
Debt Instrument [Line Items] | ||||||||||
Extinguishment of Debt, Amount | $ 48,100,000 | |||||||||
Number Of Mortgage Notes Receivable | loans | 6 | 6 | ||||||||
Number of Properties Securing Mortgage Note | properties | 6 | 6 | ||||||||
Common Shares, shares issued | shares | 76,393,409 | 76,393,409 | 66,263,487 | |||||||
Net proceeds from issuance of common shares | $ 68,352,000 | $ 142,279,000 | ||||||||
Gain on Extinguishment of Debt | $ 977,000 | $ 0 | $ 977,000 | $ 0 | ||||||
direct share purchase plan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Common Shares, shares issued | shares | 928,219 | 928,219 | ||||||||
Net proceeds from issuance of common shares | $ 67,900,000 | |||||||||
Subsequent Event [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Extinguishment of Debt, Amount | $ 24,900,000 | |||||||||
Number Of Mortgage Notes Receivable | 3 | |||||||||
Number of Properties Securing Mortgage Note | properties | 3 | |||||||||
Common Stock [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stock Issued During Period, Shares, Acquisitions | shares | 8,851,264 | 8,851,264 | ||||||||
Mortgage note, due July 6, 2017 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Extinguishment of Debt, Amount | $ 87,000,000 | |||||||||
Number of Properties Securing Mortgage Note | properties | 11 | 11 | ||||||||
Gain on Extinguishment of Debt | $ 1,000,000 | |||||||||
Senior Unsecured Notes Payable, 4.50 Percent, Due June 1, 2027 [Member] | Unsecured Debt [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 450,000,000 | |||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.50% | 4.50% | ||||||||
Senior Unsecured Notes Payable, Percent of Principal Amount Issued | 0.99393 | 0.99393 | ||||||||
Debt Covenant, Debt to Adjusted Total Assets Ratio, Maximum | 0.6 | |||||||||
Debt Covenant, Secured Debt to Adjusted Total Assets Ratio, Maximum | 0.4 | |||||||||
Debt Covenant, Debt Service Coverage Ratio, Minimum | 1.5 | |||||||||
Debt Covenant, Total Unencumbered Assets to Outstanding Unsecured Debt Ratio, Minimum | 150.00% |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) $ in Millions | Jun. 30, 2017USD ($) |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | $ 14.9 |
Variable Interest entity, number of entities | 2 |
Investment in unconsolidated VIE | $ 177.5 |
Unconsolidated investment maximum exposure to loss | $ 177.5 |
SVVI [Member] | |
Number of properties securing unconsolidated variable interest entity | 3 |
Education Property Member | Education Reportable Operating Segment [Member] | |
Number of properties securing unconsolidated variable interest entity | 1 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) CAD in Millions, $ in Millions | 6 Months Ended | ||
Jun. 30, 2017USD ($)swap_agreementspropertiesCAD / $ | Jun. 30, 2017CADCAD / $ | Dec. 31, 2016USD ($) | |
credit risk related contingent features default on debt amount | $ 25 | ||
Derivative Liability, Fair Value, Gross Liability | 0.3 | $ 2.5 | |
Derivative Asset, Fair Value, Gross Asset | 29.5 | $ 35.9 | |
Cash Flow Hedging [Member] | |||
Estimated amount to be reclassified from accumulated other comprehensive income to other expense in the next twelve months | 2.4 | ||
Interest Rate Swap [Member] | |||
Fair value of derivatives in a liability position | 0.3 | ||
Assets needed to settle obligations under the agreements | 0.1 | ||
Interest Rate Risk [Member] | |||
Estimated amount to be reclassified from accumulated other comprehensive income to other expense in the next twelve months | $ 0.5 | ||
Cross Currency Swaps [Member] | |||
Net exchange rate, CAD to US dollar | CAD / $ | 1.05 | 1.05 | |
Cross Currency Swaps 2018 [Member] | |||
Derivative, Notional Amount | $ 98.1 | CAD 100 | |
Description of Foreign Currency Exposure | 13.5 | ||
Currency Forward Agreements [Member] | Net Investment Hedging [Member] | |||
Number of Canadian properties exposed to foreign currency exchange risk (in properties) | properties | 4 | ||
Derivative, Notional Amount | $ 94.3 | CAD 100 | |
Net exchange rate, CAD to US dollar | CAD / $ | 1.06 | 1.06 | |
Currency Forward Agreements 2018 [Member] | Net Investment Hedging [Member] | |||
Derivative, Notional Amount | CAD | CAD 88.1 | ||
Net exchange rate, CAD to US dollar | CAD / $ | 1.13 | 1.13 | |
interest rate swap 3.78percent [Member] | Interest Rate Swap [Member] | |||
Number of entered into interest rate swap agreements (in interest rate swaps) | swap_agreements | 3 | ||
Derivative fixed interest rate | 3.78% | 3.78% | |
Derivative, Notional Amount | $ 240 | ||
interest rate swap 2.94percent [Member] [Member] | Interest Rate Swap [Member] | |||
Number of entered into interest rate swap agreements (in interest rate swaps) | swap_agreements | 2 | ||
Derivative fixed interest rate | 2.94% | 2.94% | |
interest rate swap 2.94percent [Member] [Member] | Minimum [Member] | Interest Rate Swap [Member] | |||
Derivative, Notional Amount | $ 60 | ||
interest rate swap 2.94percent [Member] [Member] | Maximum [Member] | Interest Rate Swap [Member] | |||
Derivative, Notional Amount | $ 300 |
Derivative Instruments (Summary
Derivative Instruments (Summary Of The Effect Of Derivative Instruments On The Consolidated Statements Of Changes In Equity And Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | $ (3,672) | $ (1,888) | $ (4,883) | $ (15,618) | |
Amount of Income (Expense) Reclassified from AOCI into Earnings (Effective Portion) | (216) | (744) | (625) | (1,339) | |
Interest Rate Swap [Member] | |||||
Amount of Income (Expense) Reclassified from AOCI into Earnings (Effective Portion) | [1] | (913) | (1,339) | (1,984) | (2,653) |
Cross Currency Swaps [Member] | |||||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | (209) | (88) | (375) | (1,438) | |
Amount of Income (Expense) Reclassified from AOCI into Earnings (Effective Portion) | [2] | 697 | 595 | 1,359 | 1,314 |
Currency Forward Agreements [Member] | |||||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | (3,166) | (31) | (4,715) | (7,554) | |
Amount of Income (Expense) Reclassified from AOCI into Earnings (Effective Portion) | 0 | 0 | 0 | 0 | |
Interest Expense [Member] | Interest Rate Swap [Member] | |||||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | $ (297) | $ (1,769) | $ 207 | $ (6,626) | |
[1] | (1)Included in "Interest expense, net" in the accompanying consolidated statements of income for the three and six months ended June 30, 2017 and 2016. | ||||
[2] | Included in "Other income" in the accompanying consolidated statements of income for the three and six months ended June 30, 2017 and 2016. |
Fair Value Disclosures (Assets
Fair Value Disclosures (Assets and Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | ||
Derivative Liability, Fair Value, Gross Liability | $ (300) | $ (2,500) | ||
Derivative Asset, Fair Value, Gross Asset | 29,500 | 35,900 | ||
Fair Value, Measurements, Recurring [Member] | Cross Currency Swaps [Member] | ||||
Derivative Asset, Fair Value, Gross Asset | [1] | 2,424 | 4,158 | |
Fair Value, Measurements, Recurring [Member] | Cross Currency Swaps [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Derivative Asset, Fair Value, Gross Asset | [1] | 2,424 | 4,158 | |
Fair Value, Measurements, Recurring [Member] | Currency Forward Agreements [Member] | ||||
Derivative Asset, Fair Value, Gross Asset | [1] | 27,067 | 31,782 | |
Fair Value, Measurements, Recurring [Member] | Currency Forward Agreements [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Derivative Asset, Fair Value, Gross Asset | [1] | 27,067 | 31,782 | |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | ||||
Derivative Liability, Fair Value, Gross Liability | (290) | (2,482) | [2] | |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Derivative Liability, Fair Value, Gross Liability | [2] | $ (290) | $ (2,482) | |
[1] | Included in "Other assets" in the accompanying consolidated balance sheets. | |||
[2] | **Included in "Accounts payable and accrued liabilities" in the accompanying consolidated balance sheets. |
Fair Value Disclosures (Asset45
Fair Value Disclosures (Assets And Liabilities Measured At Fair Value On A Non-Recurring Basis) (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability | $ 93,307,000 | $ 102,698,000 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability | [1] | $ 35,807 | |
[1] | **Included in "Accounts payable and accrued liabilities" in the accompanying consolidated balance sheets. |
Fair Value Disclosures (Narrati
Fair Value Disclosures (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Asset Impairment Charges | $ 10,195 | $ 0 | $ 10,195 | $ 0 | |
Mortgage notes and related accrued interest receivable | 941,599 | 941,599 | $ 613,978 | ||
Investment in a direct financing lease, net | 93,307 | $ 93,307 | $ 102,698 | ||
Finance lease investment weighted average interest rate | 11.98% | 12.00% | |||
Minimum interest on investments in direct finance lease | 11.90% | 11.79% | 11.79% | ||
Maximum interest on investments in direct finance lease | 12.38% | 12.38% | 12.38% | ||
Debt | 2,792,920 | $ 2,792,920 | $ 2,485,625 | ||
Fixed Rate Mortgage Notes Receivable [Member] | |||||
Mortgage notes and related accrued interest receivable | 941,600 | $ 941,600 | $ 614,000 | ||
Weighted average interest rate of mortgage notes receivable | 8.45% | 8.77% | |||
Receivable interest rate minimum | 7.00% | 7.00% | |||
Receivable interest rate maximum | 11.31% | 11.31% | |||
Weighted market rate used for determining future cash flow for notes receivable | 8.53% | 8.48% | |||
Fair value of notes receivable | 972,800 | $ 972,800 | $ 648,500 | ||
Variable Rate Debt [Member] | |||||
Debt | $ 375,000 | $ 375,000 | $ 375,000 | ||
Long-term debt, weighted average interest rate | 3.28% | 3.28% | 3.23% | ||
Variable Rate Converted to Fixed Rate [Member] | |||||
Debt | $ 300,000 | $ 300,000 | $ 300,000 | ||
Fixed Rate Debt [Member] | |||||
Debt | $ 2,450,000 | $ 2,450,000 | $ 2,140,000 | ||
Long-term debt, weighted average interest rate | 5.16% | 5.16% | 5.27% | ||
Weighted market rate for determining fair value of debt | 4.03% | 4.26% | |||
Fair value of debt | $ 2,560,000 | $ 2,560,000 | |||
Long-term Debt, Fair Value | $ 2,210,000 | ||||
Minimum [Member] | Fixed Rate Mortgage Notes Receivable [Member] | |||||
market rate used as discount factor to determine fair value of notes | 7.00% | 7.00% | |||
Minimum [Member] | Fixed Rate Debt [Member] | |||||
market rate used as discount factor to determine fair value of debt | 3.06% | 2.97% | |||
Maximum [Member] | Fixed Rate Mortgage Notes Receivable [Member] | |||||
market rate used as discount factor to determine fair value of notes | 12.00% | 12.00% | |||
Maximum [Member] | Fixed Rate Debt [Member] | |||||
market rate used as discount factor to determine fair value of debt | 4.56% | 4.75% | |||
Imagine Schools Member | |||||
Investment in a direct financing lease, net | $ 57,500 | $ 57,500 |
Earnings Per Share (Computation
Earnings Per Share (Computation Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Basic EPS: | ||||
Income from continuing operations | $ 80,535 | $ 55,135 | $ 134,451 | $ 109,315 |
Less: preferred dividend requirements | $ (5,952) | $ (5,952) | $ (11,904) | $ (11,904) |
Weighted average number of shares outstanding, basic | 73,159 | 63,592 | 68,621 | 63,128 |
Net income available to common shareholders of EPR Properties | $ 74,583 | $ 49,183 | $ 122,547 | $ 97,411 |
Net income available to common shareholders (in dollars per share) | $ 1.02 | $ 0.77 | $ 1.79 | $ 1.54 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | $ 97,411 | |||
Diluted EPS: | ||||
Share options (in shares) | 66 | 86 | 68 | 85 |
Income from continuing operations available to common shareholders, diluted | $ 74,583 | $ 49,183 | $ 122,547 | |
Weighted average number of shares outstanding, diluted | 73,225 | 63,678 | 68,689 | 63,213 |
Net income available to common shareholders, diluted | $ 74,583 | $ 49,183 | $ 122,547 | $ 97,411 |
Net income available to common shareholders (in dollars per share) | $ 1.02 | $ 0.77 | $ 1.78 | $ 1.54 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Anitidlutive securities exluded from computation of earnings per share [Line Items] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 61.79 | $ 61.79 | $ 61.79 | $ 61.79 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 76.63 | $ 76.63 | ||
Series C Cumulative Convertible Preferred Share [Member] | ||||
Anitidlutive securities exluded from computation of earnings per share [Line Items] | ||||
Common shares upon conversion of convertible preferred shares | 2,100 | 2,000 | ||
Preferred share dividend percentage | 5.75% | 5.75% | ||
Series E Cumulative Convertible Preferred Share [Member] | ||||
Anitidlutive securities exluded from computation of earnings per share [Line Items] | ||||
Common shares upon conversion of convertible preferred shares | 1,600 | 1,600 | ||
Preferred share dividend percentage | 9.00% | 9.00% | ||
Share Options [Member] | ||||
Anitidlutive securities exluded from computation of earnings per share [Line Items] | ||||
Common shares upon conversion of convertible preferred shares | 5 | 84 | 5 | 85 |
Equity Incentive Plans (Summary
Equity Incentive Plans (Summary Of Share Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | May 12, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Non-employee Trustee Length of Period Subsequent to Grant Date Options Not Exercisable | 1 year | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 6 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 189,145 | |||
Maximum term of options granted (in years) | 10 years | |||
Exercisable rate for employees options, per year | 25.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Number of Shares, Outstanding at Beginning of Period | 285,986 | |||
Number of Shares, Exercised | (28,175) | |||
Number of Shares, Granted | 2,215 | |||
Number of Shares, Outstanding at End of Period | 258,684 | |||
Average Exercise Price, Outstanding at Beginning of Period | $ 51.80 | $ 51.93 | ||
Average Exercise Price, Exercised | 54.74 | |||
Average Exercise Price, Outstanding at End of Period | 51.80 | 51.93 | ||
Weighted average fair value of options granted | $ 7.91 | |||
Intrinsic value of stock options exercised | $ 500 | $ 3,400 | ||
Repurchase of treasury stock (in shares) | 21,177 | |||
Repurchase of treasury stock, value | $ 1,500 | |||
Share based compensation expenses recognized in future periods | $ 600 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 76.63 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (1,342) | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ 59.52 | |||
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Option Price Per Share, Outstanding at Beginning of Period | 19.02 | 19.02 | ||
Option Price Per Share, Exercised | 46.86 | |||
Option Price Per Share, Outstanding at End of Period | 19.02 | 19.02 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Price Per Share | 76.63 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period, Price Per Share | 51.64 | |||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Option Price Per Share, Outstanding at Beginning of Period | 76.63 | 61.79 | ||
Option Price Per Share, Exercised | 61.79 | |||
Option Price Per Share, Outstanding at End of Period | 76.63 | $ 61.79 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Price Per Share | 76.63 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period, Price Per Share | $ 60.03 | |||
Share Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Stock-option expense | $ 361 | $ 460 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 2.10% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 22.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Forfeiture Rate | 0.74% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years | 6 years | ||
Share Options [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 5.40% | |||
2016 Equity Incentive Plan [Member] | ||||
Common shares, options to purchase common shares and restricted share units, expected to granted (in shares) | 1,950,000 | |||
Number of shares available for grant (in shares) | 1,633,001 | |||
Exercise Price Range Nineteen Point Two to Nineteen Point Nine Nine [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 1 year 11 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 1 year 11 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 11,097 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Number of Shares, Outstanding at End of Period | 11,097 | |||
Thirty To Thirty Nine Point Nine Nine Member | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 2 years 6 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 2 years 6 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,428 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Number of Shares, Outstanding at End of Period | 1,428 | |||
Forty To Forty Nine Point Nine Nine Member | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years 7 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 4 years 7 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 86,913 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Number of Shares, Outstanding at End of Period | 86,913 | |||
Fifty To Fifty Nine Point Nine Nine Member | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 3 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 6 years 2 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 51,332 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Number of Shares, Outstanding at End of Period | 75,995 | |||
Sixty To Sixty Five Point Five Zero Member | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 7 years 7 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 7 years 7 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 38,375 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Number of Shares, Outstanding at End of Period | 81,036 | |||
Seventy To Seventy Six Point Six Three [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 9 years 8 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Number of Shares, Outstanding at End of Period | 2,215 |
Equity Incentive Plans (Summa50
Equity Incentive Plans (Summary Of Outstanding Options) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 76.63 | $ 76.63 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 61.79 | $ 61.79 | $ 61.79 | $ 61.79 | |
Options outstanding (in shares) | 258,684 | 258,684 | 285,986 | ||
Weighted avg. life remaining (in years) | 6 years | ||||
Weighted avg. exercise price | $ 51.80 | $ 51.80 | $ 51.93 | ||
Aggregate intrinsic value | $ 5,202 | $ 5,202 | |||
Share Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 22.00% | ||||
Minimum [Member] | Share Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 5.40% | ||||
Exercise Price Range Nineteen Point Two to Nineteen Point Nine Nine [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 19.99 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 19.02 | ||||
Options outstanding (in shares) | 11,097 | 11,097 | |||
Weighted avg. life remaining (in years) | 1 year 11 months | ||||
Twenty To Twenty Nine Point Nine Nine Member | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 29.99 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | 20 | ||||
Thirty To Thirty Nine Point Nine Nine Member | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | 39.99 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 30 | ||||
Options outstanding (in shares) | 1,428 | 1,428 | |||
Weighted avg. life remaining (in years) | 2 years 6 months | ||||
Forty To Forty Nine Point Nine Nine Member | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 49.99 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 40 | ||||
Options outstanding (in shares) | 86,913 | 86,913 | |||
Weighted avg. life remaining (in years) | 4 years 7 months | ||||
Fifty To Fifty Nine Point Nine Nine Member | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 59.99 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 50 | ||||
Options outstanding (in shares) | 75,995 | 75,995 | |||
Weighted avg. life remaining (in years) | 6 years 3 months | ||||
Sixty To Sixty Five Point Five Zero Member | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 69.99 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 60 | ||||
Options outstanding (in shares) | 81,036 | 81,036 | |||
Weighted avg. life remaining (in years) | 7 years 7 months | ||||
Seventy To Seventy Six Point Six Three [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 76.63 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 70 | ||||
Options outstanding (in shares) | 2,215 | 2,215 | |||
Weighted avg. life remaining (in years) | 9 years 8 months |
Equity Incentive Plans (Summa51
Equity Incentive Plans (Summary Of Exercisable Options) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 76.63 | $ 76.63 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 61.79 | $ 61.79 | $ 61.79 | $ 61.79 |
Options outstanding (in shares) | 189,145 | 189,145 | ||
Weighted avg. life remaining (in years) | 5 years 6 months | |||
Weighted avg. exercise price | $ 49.28 | $ 49.28 | ||
Aggregate intrinsic value | $ 4,273 | $ 4,273 | ||
Exercise Price Range Nineteen Point Two to Nineteen Point Nine Nine [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 19.99 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 19.02 | |||
Options outstanding (in shares) | 11,097 | 11,097 | ||
Weighted avg. life remaining (in years) | 1 year 11 months | |||
Twenty To Twenty Nine Point Nine Nine Member | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 29.99 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | 20 | |||
Thirty To Thirty Nine Point Nine Nine Member | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | 39.99 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 30 | |||
Options outstanding (in shares) | 1,428 | 1,428 | ||
Weighted avg. life remaining (in years) | 2 years 6 months | |||
Forty To Forty Nine Point Nine Nine Member | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 49.99 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 40 | |||
Options outstanding (in shares) | 86,913 | 86,913 | ||
Weighted avg. life remaining (in years) | 4 years 7 months | |||
Fifty To Fifty Nine Point Nine Nine Member | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 59.99 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 50 | |||
Options outstanding (in shares) | 51,332 | 51,332 | ||
Weighted avg. life remaining (in years) | 6 years 2 months | |||
Sixty To Sixty Five Point Five Zero Member | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 69.99 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 60 | |||
Options outstanding (in shares) | 38,375 | 38,375 | ||
Weighted avg. life remaining (in years) | 7 years 7 months | |||
Seventy To Seventy Six Point Six Three [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 76.63 | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 70 |
Equity Incentive Plans (Summa52
Equity Incentive Plans (Summary Of Nonvested Share Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 66.88 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||
Number of Shares, Outstanding at December 31, 2016 | 534,317 | |
Number of Shares, Vested | (208,822) | |
Number of Shares, Outstanding at March 31, 2017 | 619,907 | |
Number of Shares, Granted | 295,754 | |
Weighted Average Grant Date Fair Value, Outstanding at December 31, 2015 | $ 59.22 | |
Weighted Average Grant Date Fair Value, Granted | 76.53 | |
Weighted Average Grant Date Fair Value, Vested | 57.43 | |
Weighted Average Grant Date Fair Value, Outstanding at September 30, 2016 | $ 68.07 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 1,342 | |
Weighted Average Life Remaining, Outstanding at September 30, 2016 (in years) | 1 year 5 months 16 days | |
Share based compensation, future vesting period minimum (in years) | 4 years | |
Fair value of non-vested shares | $ 15 | $ 9.2 |
Unamortized share-based compensation expense | $ 27.3 | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||
Share based compensation, future vesting period minimum (in years) | 4 years | |
Maximum [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||
Share based compensation, future vesting period minimum (in years) | 4 years | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||
Share based compensation, future vesting period minimum (in years) | 3 years | |
Minimum [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||
Share based compensation, future vesting period minimum (in years) | 3 years |
Equity Incentive Plans (Summa53
Equity Incentive Plans (Summary Of Restricted Share Unit Activity) (Details) $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
Range of settlement date for shares for non-employee trustee from grant date, minimum | 1 year |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |
Number of Shares, Outstanding at December 31, 2016 | shares | 534,317 |
Number of Shares, Granted | shares | 295,754 |
Number of Shares, Vested | shares | (208,822) |
Number of Shares, Outstanding at March 31, 2017 | shares | 619,907 |
Weighted Average Grant Date Fair Value, Outstanding at December 31, 2015 | $ / shares | $ 59.22 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 76.53 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 57.43 |
Weighted Average Grant Date Fair Value, Outstanding at September 30, 2016 | $ / shares | $ 68.07 |
Weighted Average Life Remaining, Outstanding at September 30, 2016 (in years) | 1 year 5 months 16 days |
Unamortized share-based compensation expense | $ | $ 27.3 |
Restricted Share Units [Member] | |
Range of settlement date for shares for non-employee trustee from grant date, minimum | 1 year |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |
Number of Shares, Outstanding at December 31, 2016 | shares | 15,805 |
Number of Shares, Granted | shares | 19,030 |
Number of Shares, Vested | shares | (15,805) |
Number of Shares, Outstanding at March 31, 2017 | shares | 19,030 |
Weighted Average Grant Date Fair Value, Outstanding at December 31, 2015 | $ / shares | $ 70.93 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 70.91 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 70.93 |
Weighted Average Grant Date Fair Value, Outstanding at September 30, 2016 | $ / shares | $ 70.91 |
Weighted Average Life Remaining, Outstanding at September 30, 2016 (in years) | 9 months 29 days |
Unamortized share-based compensation expense | $ | $ 1.1 |
Other Commitments And Conting54
Other Commitments And Contingencies (Details) | Jun. 30, 2014claim | Oct. 20, 2011USD ($)claim | Mar. 31, 2017USD ($) | Jun. 30, 2017USD ($)mortgagenotesdevelopmentproject | Dec. 31, 2016USD ($) |
Loss Contingency, Claims Settled and Dismissed, Number | claim | 2 | 2 | |||
Commitment to fund project development | $ 175,700,000 | ||||
Number of Surety Bonds | 6 | ||||
Surety bonds | $ 24,300,000 | ||||
Number of Mortgage Notes Receivable (in mortgage notes) | mortgagenotes | 8 | ||||
Mortgage notes receivable with commitments | $ 11,700,000 | ||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 24,900,000 | ||||
Loss Contingency, Damages Sought, Value | $ 800,000,000 | ||||
Loss Contingency, Claims Dismissed, Number | claim | 1 | ||||
Loss Contingency, New Claims Filed, Number | claim | 3 | ||||
Theatre Properties [Member] | |||||
Development projects in process (in projects) | developmentproject | 17 | ||||
Commitment to fund project development | $ 65,500,000 | ||||
recreationproperties [Member] | |||||
Development projects in process (in projects) | developmentproject | 5 | ||||
Commitment to fund project development | $ 54,700,000 | ||||
Concord Resort [Member] | |||||
Commitment to fund project development | 155,000,000 | ||||
Adelaar Infrastructure [Member] | |||||
Special Assessment Bond | 110,000,000 | ||||
Property under development | $ 11,700,000 | $ 43,400,000 | |||
Anticipated reimbursement received from payment of economic development revenue bonds | $ 33,200,000 | ||||
Education Property Member | |||||
Development projects in process (in projects) | developmentproject | 16 | ||||
Commitment to fund project development | $ 55,500,000 | ||||
Louisiana Theatre Properties [Member] | |||||
Development projects in process (in projects) | developmentproject | 2 | ||||
Economic development revenue bond term | 30 years | ||||
Deferred assets related to guarantee | $ 10,500,000 | ||||
Deferred liabilities related to guarantee | 10,500,000 | ||||
Loss contingency | $ 0 | ||||
Minimum [Member] | Louisiana Theatre Properties [Member] | |||||
Economic development revenue bond annual fees percentage | 2.88% | ||||
Maximum [Member] | Louisiana Theatre Properties [Member] | |||||
Economic development revenue bond annual fees percentage | 4.00% | ||||
Waterpark Hotel and Adventure Park [Member] | Kiamesha Lake NY [Member] | |||||
Commitment to fund project development | $ 5,000,000 |
Segment Information Balance She
Segment Information Balance Sheet Data (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017USD ($)segment | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of Reportable Operating Segments | segment | 4 | |
Total Assets | $ 5,938,886 | $ 4,865,022 |
Entertainment Reportable Operating Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 2,200,480 | 2,168,669 |
Education Reportable Operating Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 1,434,537 | 1,308,288 |
Recreation Reportable Operating Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 1,993,713 | 1,120,498 |
Other Reportable Operating Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 201,163 | 202,394 |
Corporate / Unallocated | ||
Segment Reporting Information [Line Items] | ||
Total Assets | $ 108,993 | $ 65,173 |
Segment Information Operating D
Segment Information Operating Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Rental revenue | $ 119,469 | $ 96,055 | $ 226,506 | $ 189,833 |
Tenant reimbursements | 3,941 | 3,891 | 7,690 | 7,756 |
Other income | 1,304 | 2,126 | 1,996 | 3,336 |
Mortgage and other financing income | 23,068 | 15,961 | 40,702 | 35,876 |
Total revenue | 147,782 | 118,033 | 276,894 | 236,801 |
Property operating expense | 6,072 | 5,580 | 12,422 | 11,061 |
Other expense | 0 | 0 | 0 | 5 |
Total investment expenses | 6,072 | 5,580 | 12,422 | 11,066 |
Net Operating Income - Before Unallocated Items | 141,710 | 112,453 | 264,472 | 225,735 |
Reconciliation to Consolidated Statements of Income: | ||||
General and administrative expense | (10,660) | (9,000) | (21,717) | (18,218) |
Costs associated with loan refinancing | (9) | (339) | (14) | (891) |
Gain on Extinguishment of Debt | 977 | 0 | 977 | 0 |
Interest expense, net | (32,967) | (22,756) | (63,659) | (46,045) |
Transaction costs | (218) | (1,490) | (275) | (1,934) |
Asset Impairment Charges | (10,195) | 0 | (10,195) | 0 |
Depreciation and amortization | (33,148) | (25,666) | (61,225) | (51,621) |
Equity in income from joint ventures | 59 | 86 | 51 | 298 |
Gain on sale of real estate | 25,461 | 2,270 | 27,465 | 2,270 |
Income tax expense | (475) | (423) | (1,429) | (279) |
Net income attributable to EPR Properties | 80,535 | 55,135 | 134,451 | 109,315 |
Preferred dividend requirements | (5,952) | (5,952) | (11,904) | (11,904) |
Net Income (Loss) Available to Common Stockholders, Basic | 74,583 | 49,183 | 122,547 | 97,411 |
Entertainment Reportable Operating Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Rental revenue | 65,462 | 61,258 | 130,553 | 121,396 |
Tenant reimbursements | 3,941 | 3,891 | 7,690 | 7,754 |
Other income | 606 | 210 | 612 | 214 |
Mortgage and other financing income | 1,096 | 1,481 | 2,275 | 3,633 |
Total revenue | 71,105 | 66,840 | 141,130 | 132,997 |
Property operating expense | 5,545 | 5,335 | 11,380 | 10,587 |
Other expense | 0 | |||
Total investment expenses | 5,545 | 5,335 | 11,380 | 10,587 |
Net Operating Income - Before Unallocated Items | 65,560 | 61,505 | 129,750 | 122,410 |
Reconciliation to Consolidated Statements of Income: | ||||
Gain on sale of real estate | 19,400 | |||
Education Reportable Operating Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Rental revenue | 22,333 | 17,717 | 44,690 | 34,897 |
Tenant reimbursements | 0 | 0 | 0 | 2 |
Other income | 1 | 0 | 1 | 0 |
Mortgage and other financing income | 8,868 | 7,178 | 17,417 | 17,909 |
Total revenue | 31,202 | 24,895 | 62,108 | 52,808 |
Property operating expense | 32 | 0 | 32 | 0 |
Other expense | 0 | |||
Total investment expenses | 32 | 0 | 32 | 0 |
Net Operating Income - Before Unallocated Items | 31,170 | 24,895 | 62,076 | 52,808 |
Recreation Reportable Operating Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Rental revenue | 29,384 | 14,789 | 46,683 | 29,485 |
Tenant reimbursements | 0 | 0 | 0 | 0 |
Other income | 0 | 1,321 | 0 | 1,810 |
Mortgage and other financing income | 13,104 | 7,268 | 21,010 | 14,266 |
Total revenue | 42,488 | 23,378 | 67,693 | 45,561 |
Property operating expense | 29 | 0 | 57 | 8 |
Other expense | 0 | |||
Total investment expenses | 29 | 0 | 57 | 8 |
Net Operating Income - Before Unallocated Items | 42,459 | 23,378 | 67,636 | 45,553 |
Other Reportable Operating Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Rental revenue | 2,290 | 2,291 | 4,580 | 4,055 |
Tenant reimbursements | 0 | 0 | 0 | 0 |
Other income | 0 | 0 | 0 | 0 |
Mortgage and other financing income | 0 | 34 | 0 | 68 |
Total revenue | 2,290 | 2,325 | 4,580 | 4,123 |
Property operating expense | 353 | 103 | 693 | 186 |
Other expense | 5 | |||
Total investment expenses | 353 | 103 | 693 | 191 |
Net Operating Income - Before Unallocated Items | 1,937 | 2,222 | 3,887 | 3,932 |
Corporate / Unallocated | ||||
Segment Reporting Information [Line Items] | ||||
Rental revenue | 0 | 0 | 0 | 0 |
Tenant reimbursements | 0 | 0 | 0 | 0 |
Other income | 697 | 595 | 1,383 | 1,312 |
Mortgage and other financing income | 0 | 0 | 0 | 0 |
Total revenue | 697 | 595 | 1,383 | 1,312 |
Property operating expense | 113 | 142 | 260 | 280 |
Other expense | 0 | |||
Total investment expenses | 113 | 142 | 260 | 280 |
Net Operating Income - Before Unallocated Items | $ 584 | $ 453 | $ 1,123 | $ 1,032 |
Condensed Consolidating Finan57
Condensed Consolidating Financial Statements (Condensed Consolidating Balance Sheet) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Rental properties, net | $ 4,288,885 | $ 3,595,762 | ||
Land held for development | 33,672 | 22,530 | ||
Property under development | 271,692 | 297,110 | ||
Mortgage notes and related accrued interest receivable | 941,599 | 613,978 | ||
Investment in a direct financing lease, net | 93,307 | 102,698 | ||
Investment in joint ventures | 5,581 | 5,972 | ||
Cash and cash equivalents | 70,872 | 19,335 | $ 8,462 | $ 4,283 |
Restricted cash | 24,255 | 9,744 | ||
Accounts receivable, net | 106,480 | 98,939 | ||
Intercompany notes receivable | 0 | 0 | ||
Investments in subsidiaries | 0 | 0 | ||
Other assets | 102,543 | 98,954 | ||
Total assets | 5,938,886 | 4,865,022 | ||
Accounts payable and accrued liabilities | 142,526 | 119,758 | ||
Dividends payable | 30,996 | 26,318 | ||
Unearned rents and interest | 71,098 | 47,420 | ||
Intercompany notes payable | 0 | 0 | ||
Debt | 2,792,920 | 2,485,625 | ||
Total liabilities | 3,037,540 | 2,679,121 | ||
Total equity | 2,901,346 | 2,185,901 | ||
Total liabilities and equity | 5,938,886 | 4,865,022 | ||
EPR Properties (Issuer) [Member] | ||||
Rental properties, net | 0 | 0 | ||
Land held for development | 0 | 0 | ||
Property under development | 2 | 1,010 | ||
Mortgage notes and related accrued interest receivable | 0 | 0 | ||
Investment in a direct financing lease, net | 0 | 0 | ||
Investment in joint ventures | 0 | 0 | ||
Cash and cash equivalents | 65,428 | 16,586 | 4,574 | 1,089 |
Restricted cash | 1,400 | 365 | ||
Accounts receivable, net | 710 | 556 | ||
Intercompany notes receivable | 0 | 0 | ||
Investments in subsidiaries | 5,634,271 | 4,521,095 | ||
Other assets | 22,804 | 21,768 | ||
Total assets | 5,724,615 | 4,561,380 | ||
Accounts payable and accrued liabilities | 61,349 | 63,431 | ||
Dividends payable | 30,996 | 26,318 | ||
Unearned rents and interest | 0 | 0 | ||
Intercompany notes payable | 0 | 0 | ||
Debt | 2,730,924 | 2,285,730 | ||
Total liabilities | 2,823,269 | 2,375,479 | ||
Total equity | 2,901,346 | 2,185,901 | ||
Total liabilities and equity | 5,724,615 | 4,561,380 | ||
Wholly-Owned Subsidiary Guarantors [Member] | ||||
Rental properties, net | 3,394,620 | 3,164,622 | ||
Land held for development | 12,400 | 1,258 | ||
Property under development | 227,534 | 247,239 | ||
Mortgage notes and related accrued interest receivable | 936,219 | 612,141 | ||
Investment in a direct financing lease, net | 93,307 | 102,698 | ||
Investment in joint ventures | 0 | 0 | ||
Cash and cash equivalents | 3,858 | 1,157 | 1,082 | 1,289 |
Restricted cash | 22,515 | 8,352 | ||
Accounts receivable, net | 93,920 | 89,145 | ||
Intercompany notes receivable | 179,589 | 179,589 | ||
Investments in subsidiaries | 0 | 0 | ||
Other assets | 23,861 | 23,068 | ||
Total assets | 4,987,823 | 4,429,269 | ||
Accounts payable and accrued liabilities | 64,417 | 52,061 | ||
Dividends payable | 0 | 0 | ||
Unearned rents and interest | 64,956 | 46,647 | ||
Intercompany notes payable | 0 | 0 | ||
Debt | 0 | 0 | ||
Total liabilities | 129,373 | 98,708 | ||
Total equity | 4,858,450 | 4,330,561 | ||
Total liabilities and equity | 4,987,823 | 4,429,269 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Rental properties, net | 894,265 | 431,140 | ||
Land held for development | 21,272 | 21,272 | ||
Property under development | 44,156 | 48,861 | ||
Mortgage notes and related accrued interest receivable | 5,380 | 1,837 | ||
Investment in a direct financing lease, net | 0 | 0 | ||
Investment in joint ventures | 5,581 | 5,972 | ||
Cash and cash equivalents | 1,586 | 1,592 | $ 2,806 | $ 1,905 |
Restricted cash | 340 | 1,027 | ||
Accounts receivable, net | 11,850 | 9,238 | ||
Intercompany notes receivable | 0 | 0 | ||
Investments in subsidiaries | 0 | 0 | ||
Other assets | 55,878 | 54,118 | ||
Total assets | 1,040,308 | 575,057 | ||
Accounts payable and accrued liabilities | 16,760 | 4,266 | ||
Dividends payable | 0 | 0 | ||
Unearned rents and interest | 6,142 | 773 | ||
Intercompany notes payable | 179,589 | 179,589 | ||
Debt | 61,996 | 199,895 | ||
Total liabilities | 264,487 | 384,523 | ||
Total equity | 775,821 | 190,534 | ||
Total liabilities and equity | 1,040,308 | 575,057 | ||
Consolidated Elimination [Member] | ||||
Rental properties, net | 0 | 0 | ||
Land held for development | 0 | 0 | ||
Property under development | 0 | 0 | ||
Mortgage notes and related accrued interest receivable | 0 | 0 | ||
Investment in a direct financing lease, net | 0 | 0 | ||
Investment in joint ventures | 0 | 0 | ||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Intercompany notes receivable | (179,589) | (179,589) | ||
Investments in subsidiaries | (5,634,271) | (4,521,095) | ||
Other assets | 0 | 0 | ||
Total assets | (5,813,860) | (4,700,684) | ||
Accounts payable and accrued liabilities | 0 | 0 | ||
Dividends payable | 0 | 0 | ||
Unearned rents and interest | 0 | 0 | ||
Intercompany notes payable | (179,589) | (179,589) | ||
Debt | 0 | 0 | ||
Total liabilities | (179,589) | (179,589) | ||
Total equity | (5,634,271) | (4,521,095) | ||
Total liabilities and equity | $ (5,813,860) | $ (4,700,684) |
Condensed Consolidating Finan58
Condensed Consolidating Financial Statements (Condensed Consolidating Statement Of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Rental revenue | $ 119,469 | $ 96,055 | $ 226,506 | $ 189,833 |
Tenant reimbursements | 3,941 | 3,891 | 7,690 | 7,756 |
Other income | 1,304 | 2,126 | 1,996 | 3,336 |
Mortgage and other financing income | 23,068 | 15,961 | 40,702 | 35,876 |
Intercompany fee income | 0 | 0 | 0 | 0 |
Interest income on intercompany notes receivable | 0 | 0 | 0 | 0 |
Total revenue | 147,782 | 118,033 | 276,894 | 236,801 |
Equity in subsidiaries' earnings | 0 | 0 | 0 | 0 |
Property operating expense | 6,072 | 5,580 | 12,422 | 11,061 |
Intercompany fee expense | 0 | 0 | 0 | 0 |
Other expense | 0 | 0 | 0 | 5 |
General and administrative expense | 10,660 | 9,000 | 21,717 | 18,218 |
Costs associated with loan refinancing or payoff | 9 | 339 | 14 | 891 |
Gain (Loss) on Extinguishment of Debt | (977) | 0 | (977) | 0 |
Interest expense, net | 32,967 | 22,756 | 63,659 | 46,045 |
Interest expense on intercompany notes payable | 0 | 0 | 0 | 0 |
Transaction costs | 218 | 1,490 | 275 | 1,934 |
Asset Impairment Charges | 10,195 | 0 | 10,195 | 0 |
Depreciation and amortization | 33,148 | 25,666 | 61,225 | 51,621 |
Income before equity in income from joint ventures and other items | 55,490 | 53,202 | 108,364 | 107,026 |
Equity in income from joint ventures | 59 | 86 | 51 | 298 |
Gain on sale of real estate | 25,461 | 2,270 | 27,465 | 2,270 |
Income before income taxes | 81,010 | 55,558 | 135,880 | 109,594 |
Income tax expense | (475) | (423) | (1,429) | (279) |
Income from continuing operations | 80,535 | 55,135 | 134,451 | 109,315 |
Net income attributable to EPR Properties | 80,535 | 55,135 | 134,451 | 109,315 |
Dividends, Preferred Stock | (5,952) | (5,952) | (11,904) | (11,904) |
Net income available to common shareholders of EPR Properties | 74,583 | 49,183 | 122,547 | 97,411 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 81,627 | 54,912 | 136,415 | 107,178 |
EPR Properties (Issuer) [Member] | ||||
Rental revenue | 0 | 0 | 0 | 0 |
Tenant reimbursements | 0 | 0 | 0 | 0 |
Other income | 0 | 0 | 0 | 0 |
Mortgage and other financing income | 232 | 212 | 464 | 424 |
Intercompany fee income | 678 | 688 | 1,362 | 1,341 |
Interest income on intercompany notes receivable | 0 | 0 | 0 | 0 |
Total revenue | 910 | 900 | 1,826 | 1,765 |
Equity in subsidiaries' earnings | 115,062 | 78,883 | 200,104 | 155,670 |
Property operating expense | 0 | 0 | 0 | 0 |
Intercompany fee expense | 0 | 0 | 0 | 0 |
Other expense | 0 | 0 | ||
General and administrative expense | 0 | 0 | 0 | 0 |
Costs associated with loan refinancing or payoff | 0 | 0 | 0 | 0 |
Gain (Loss) on Extinguishment of Debt | 0 | 0 | ||
Interest expense, net | 34,602 | 22,437 | 66,060 | 44,627 |
Interest expense on intercompany notes payable | 0 | 0 | 0 | 0 |
Transaction costs | 218 | 1,394 | 275 | 1,837 |
Asset Impairment Charges | 0 | 0 | ||
Depreciation and amortization | 237 | 446 | 430 | 889 |
Income before equity in income from joint ventures and other items | 80,915 | 55,506 | 135,165 | 110,082 |
Equity in income from joint ventures | 0 | 0 | 0 | 0 |
Gain on sale of real estate | 0 | 0 | 0 | 0 |
Income before income taxes | 80,915 | 55,506 | 135,165 | 110,082 |
Income tax expense | (380) | (371) | (714) | (767) |
Net income attributable to EPR Properties | 80,535 | 55,135 | 134,451 | 109,315 |
Dividends, Preferred Stock | (5,952) | (5,952) | (11,904) | (11,904) |
Net income available to common shareholders of EPR Properties | 74,583 | 49,183 | 122,547 | 97,411 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 81,627 | 54,912 | 136,415 | 107,178 |
Wholly-Owned Subsidiary Guarantors [Member] | ||||
Rental revenue | 95,048 | 82,393 | 188,579 | 162,722 |
Tenant reimbursements | 1,440 | 1,372 | 2,681 | 2,721 |
Other income | 607 | 1,329 | 613 | 1,820 |
Mortgage and other financing income | 22,771 | 15,659 | 40,143 | 31,678 |
Intercompany fee income | 0 | 0 | 0 | 0 |
Interest income on intercompany notes receivable | 2,411 | 2,500 | 4,855 | 4,836 |
Total revenue | 122,277 | 103,253 | 236,871 | 203,777 |
Equity in subsidiaries' earnings | 0 | 0 | 0 | 0 |
Property operating expense | 3,060 | 2,555 | 6,322 | 5,218 |
Intercompany fee expense | 0 | 0 | 0 | 0 |
Other expense | 0 | 0 | ||
General and administrative expense | 8,688 | 7,718 | 18,278 | 15,378 |
Costs associated with loan refinancing or payoff | 0 | 339 | 0 | 339 |
Gain (Loss) on Extinguishment of Debt | 0 | 0 | ||
Interest expense, net | (2,461) | (1,954) | (5,114) | (3,200) |
Interest expense on intercompany notes payable | 0 | 0 | 0 | 0 |
Transaction costs | 0 | 0 | 0 | 0 |
Asset Impairment Charges | 10,195 | 10,195 | ||
Depreciation and amortization | 25,236 | 21,674 | 49,961 | 43,748 |
Income before equity in income from joint ventures and other items | 77,559 | 72,921 | 157,229 | 142,294 |
Equity in income from joint ventures | 0 | 0 | 0 | 0 |
Gain on sale of real estate | 24,343 | 2,270 | 26,347 | 2,270 |
Income before income taxes | 101,902 | 75,191 | 183,576 | 144,564 |
Income tax expense | 0 | 0 | 0 | 0 |
Net income attributable to EPR Properties | 101,902 | 75,191 | 183,576 | 144,564 |
Dividends, Preferred Stock | 0 | 0 | 0 | 0 |
Net income available to common shareholders of EPR Properties | 101,902 | 75,191 | 183,576 | 144,564 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 101,902 | 75,191 | 183,576 | 144,564 |
Non-Guarantor Subsidiaries [Member] | ||||
Rental revenue | 24,421 | 13,662 | 37,927 | 27,111 |
Tenant reimbursements | 2,501 | 2,519 | 5,009 | 5,035 |
Other income | 697 | 797 | 1,383 | 1,516 |
Mortgage and other financing income | 65 | 90 | 95 | 3,774 |
Intercompany fee income | 0 | 0 | 0 | 0 |
Interest income on intercompany notes receivable | 0 | 0 | 0 | 0 |
Total revenue | 27,684 | 17,068 | 44,414 | 37,436 |
Equity in subsidiaries' earnings | 0 | 0 | 0 | 0 |
Property operating expense | 3,012 | 3,025 | 6,100 | 5,843 |
Intercompany fee expense | 678 | 688 | 1,362 | 1,341 |
Other expense | 0 | 5 | ||
General and administrative expense | 1,972 | 1,282 | 3,439 | 2,840 |
Costs associated with loan refinancing or payoff | 9 | 0 | 14 | 552 |
Gain (Loss) on Extinguishment of Debt | (977) | (977) | ||
Interest expense, net | 826 | 2,273 | 2,713 | 4,618 |
Interest expense on intercompany notes payable | 2,411 | 2,500 | 4,855 | 4,836 |
Transaction costs | 0 | 96 | 0 | 97 |
Asset Impairment Charges | 0 | 0 | ||
Depreciation and amortization | 7,675 | 3,546 | 10,834 | 6,984 |
Income before equity in income from joint ventures and other items | 12,078 | 3,658 | 16,074 | 10,320 |
Equity in income from joint ventures | 59 | 86 | 51 | 298 |
Gain on sale of real estate | 1,118 | 0 | 1,118 | 0 |
Income before income taxes | 13,255 | 3,744 | 17,243 | 10,618 |
Income tax expense | (95) | (52) | (715) | 488 |
Net income attributable to EPR Properties | 13,160 | 3,692 | 16,528 | 11,106 |
Dividends, Preferred Stock | 0 | 0 | 0 | 0 |
Net income available to common shareholders of EPR Properties | 13,160 | 3,692 | 16,528 | 11,106 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 13,635 | 3,900 | 16,299 | 12,943 |
Consolidated Elimination [Member] | ||||
Rental revenue | 0 | 0 | 0 | 0 |
Tenant reimbursements | 0 | 0 | 0 | 0 |
Other income | 0 | 0 | 0 | 0 |
Mortgage and other financing income | 0 | 0 | 0 | 0 |
Intercompany fee income | (678) | (688) | (1,362) | (1,341) |
Interest income on intercompany notes receivable | (2,411) | (2,500) | (4,855) | (4,836) |
Total revenue | (3,089) | (3,188) | (6,217) | (6,177) |
Equity in subsidiaries' earnings | (115,062) | (78,883) | (200,104) | (155,670) |
Property operating expense | 0 | 0 | 0 | 0 |
Intercompany fee expense | (678) | (688) | (1,362) | (1,341) |
Other expense | 0 | 0 | ||
General and administrative expense | 0 | 0 | 0 | 0 |
Costs associated with loan refinancing or payoff | 0 | 0 | 0 | 0 |
Gain (Loss) on Extinguishment of Debt | 0 | 0 | ||
Interest expense, net | 0 | 0 | 0 | 0 |
Interest expense on intercompany notes payable | (2,411) | (2,500) | (4,855) | (4,836) |
Transaction costs | 0 | 0 | 0 | 0 |
Asset Impairment Charges | 0 | 0 | ||
Depreciation and amortization | 0 | 0 | 0 | 0 |
Income before equity in income from joint ventures and other items | (115,062) | (78,883) | (200,104) | (155,670) |
Equity in income from joint ventures | 0 | 0 | 0 | 0 |
Gain on sale of real estate | 0 | 0 | 0 | 0 |
Income before income taxes | (115,062) | (78,883) | (200,104) | (155,670) |
Income tax expense | 0 | 0 | 0 | 0 |
Net income attributable to EPR Properties | (115,062) | (78,883) | (200,104) | (155,670) |
Dividends, Preferred Stock | 0 | 0 | 0 | 0 |
Net income available to common shareholders of EPR Properties | (115,062) | (78,883) | (200,104) | (155,670) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ (115,537) | $ (79,091) | $ (199,875) | $ (157,507) |
Condensed Consolidating Finan59
Condensed Consolidating Financial Statements (Condensed Consolidating Statement Of Cash Flows) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Intercompany fee income (expense) | $ 0 | $ 0 |
Interest income (expense) on intercompany receivable/payable | 0 | 0 |
Net cash provided (used) by other operating activities | 180,270 | 152,532 |
Net cash provided by operating activities | 180,270 | 152,532 |
Acquisition of rental properties and other assets | (197,097) | (138,788) |
Proceeds from sale of real estate | 130,726 | 13,129 |
Investment in mortgage notes receivable | (101,721) | (65,508) |
Proceeds from mortgage note receivable paydown | 15,610 | 63,685 |
Investment in promissory notes receivable | 1,387 | 0 |
Proceeds from sale of infrastructure related to issuance of revenue bonds | 0 | 43,462 |
Proceeds from insurance recovery | 0 | 2,211 |
Proceeds from Sale of Lease Receivables | 0 | 825 |
Proceeds from Sale and Collection of Notes Receivable | 1,599 | 0 |
Additions to properties under development | (196,354) | (187,216) |
Advances to subsidiaries, net | 0 | 0 |
Net cash used by investing activities | (348,624) | (268,200) |
Proceeds from long-term debt facilities | 915,000 | 318,000 |
Principal payments on long-term debt | (601,962) | (203,116) |
Deferred financing fees paid | (7,042) | (169) |
Costs associated with loan refinancing or payoff (cash portion) | (6) | (472) |
Net proceeds from issuance of common shares | 68,352 | 142,279 |
Impact of stock option exercises, net | 0 | (717) |
Purchase of common shares for treasury | (6,729) | (4,208) |
Dividends paid to shareholders | (147,845) | (131,701) |
Net cash provided by financing activities | 219,768 | 119,896 |
Effect of exchange rate changes on cash | 123 | (49) |
Net increase (decrease) in cash and cash equivalents | 51,537 | 4,179 |
Cash and cash equivalents at beginning of the year | 19,335 | 4,283 |
Cash and cash equivalents at end of the year | 70,872 | 8,462 |
EPR Properties (Issuer) [Member] | ||
Intercompany fee income (expense) | 1,362 | (1,341) |
Interest income (expense) on intercompany receivable/payable | 0 | 0 |
Net cash provided (used) by other operating activities | (58,920) | (43,623) |
Net cash provided by operating activities | (57,558) | (42,282) |
Acquisition of rental properties and other assets | (942) | (107) |
Proceeds from sale of real estate | 203 | 0 |
Investment in mortgage notes receivable | 0 | 0 |
Proceeds from mortgage note receivable paydown | 0 | 0 |
Investment in promissory notes receivable | 0 | |
Proceeds from sale of infrastructure related to issuance of revenue bonds | 0 | |
Proceeds from insurance recovery | 0 | |
Proceeds from Sale of Lease Receivables | 0 | |
Proceeds from Sale and Collection of Notes Receivable | 0 | |
Additions to properties under development | (727) | (25) |
Advances to subsidiaries, net | (248,870) | (110,593) |
Net cash used by investing activities | (250,336) | (110,725) |
Proceeds from long-term debt facilities | 915,000 | 318,000 |
Principal payments on long-term debt | (465,000) | (167,000) |
Deferred financing fees paid | (7,042) | (161) |
Costs associated with loan refinancing or payoff (cash portion) | 0 | 0 |
Net proceeds from issuance of common shares | 68,352 | 142,279 |
Impact of stock option exercises, net | (717) | |
Purchase of common shares for treasury | (6,729) | (4,208) |
Dividends paid to shareholders | (147,845) | (131,701) |
Net cash provided by financing activities | 356,736 | 156,492 |
Effect of exchange rate changes on cash | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 48,842 | 3,485 |
Cash and cash equivalents at beginning of the year | 16,586 | 1,089 |
Cash and cash equivalents at end of the year | 65,428 | 4,574 |
Wholly-Owned Subsidiary Guarantors [Member] | ||
Intercompany fee income (expense) | 0 | 0 |
Interest income (expense) on intercompany receivable/payable | 4,855 | 4,836 |
Net cash provided (used) by other operating activities | 211,488 | 171,721 |
Net cash provided by operating activities | 216,343 | 176,557 |
Acquisition of rental properties and other assets | (141,528) | (138,578) |
Proceeds from sale of real estate | 101,281 | 11,652 |
Investment in mortgage notes receivable | (97,958) | (65,508) |
Proceeds from mortgage note receivable paydown | 15,610 | 44,365 |
Investment in promissory notes receivable | 1,387 | |
Proceeds from sale of infrastructure related to issuance of revenue bonds | 43,462 | |
Proceeds from insurance recovery | 1,810 | |
Proceeds from Sale of Lease Receivables | 825 | |
Proceeds from Sale and Collection of Notes Receivable | 1,599 | |
Additions to properties under development | (186,284) | (184,213) |
Advances to subsidiaries, net | 95,025 | 134,876 |
Net cash used by investing activities | (213,642) | (151,309) |
Proceeds from long-term debt facilities | 0 | 0 |
Principal payments on long-term debt | 0 | (25,455) |
Deferred financing fees paid | 0 | 0 |
Costs associated with loan refinancing or payoff (cash portion) | 0 | 0 |
Net proceeds from issuance of common shares | 0 | 0 |
Impact of stock option exercises, net | 0 | |
Purchase of common shares for treasury | 0 | 0 |
Dividends paid to shareholders | 0 | 0 |
Net cash provided by financing activities | 0 | (25,455) |
Effect of exchange rate changes on cash | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 2,701 | (207) |
Cash and cash equivalents at beginning of the year | 1,157 | 1,289 |
Cash and cash equivalents at end of the year | 3,858 | 1,082 |
Non-Guarantor Subsidiaries [Member] | ||
Intercompany fee income (expense) | (1,362) | 1,341 |
Interest income (expense) on intercompany receivable/payable | (4,855) | (4,836) |
Net cash provided (used) by other operating activities | 27,702 | 24,434 |
Net cash provided by operating activities | 21,485 | 18,257 |
Acquisition of rental properties and other assets | (54,627) | (103) |
Proceeds from sale of real estate | 29,242 | 1,477 |
Investment in mortgage notes receivable | (3,763) | 0 |
Proceeds from mortgage note receivable paydown | 0 | 19,320 |
Investment in promissory notes receivable | 0 | |
Proceeds from sale of infrastructure related to issuance of revenue bonds | 0 | |
Proceeds from insurance recovery | 401 | |
Proceeds from Sale of Lease Receivables | 0 | |
Proceeds from Sale and Collection of Notes Receivable | 0 | |
Additions to properties under development | (9,343) | (2,978) |
Advances to subsidiaries, net | 153,845 | (24,283) |
Net cash used by investing activities | 115,354 | (6,166) |
Proceeds from long-term debt facilities | 0 | 0 |
Principal payments on long-term debt | (136,962) | (10,661) |
Deferred financing fees paid | 0 | (8) |
Costs associated with loan refinancing or payoff (cash portion) | (6) | (472) |
Net proceeds from issuance of common shares | 0 | 0 |
Impact of stock option exercises, net | 0 | |
Purchase of common shares for treasury | 0 | 0 |
Dividends paid to shareholders | 0 | 0 |
Net cash provided by financing activities | (136,968) | (11,141) |
Effect of exchange rate changes on cash | 123 | (49) |
Net increase (decrease) in cash and cash equivalents | (6) | 901 |
Cash and cash equivalents at beginning of the year | 1,592 | 1,905 |
Cash and cash equivalents at end of the year | $ 1,586 | $ 2,806 |