EPR Properties reports 2017 earnings growth but lowers 2018 guidance



EPR Properties’ earnings increased 16.4 percent in 2017, the company reported in a Wednesday earnings release.

The Kansas City-based real estate investment trust, which specializes in entertainment and recreation properties, posted 2017 net income available to common shareholders of $234.2 million, or $3.29 per diluted common share. That was up from $201.2 million, or $3.17 per diluted common share, the year prior.

Funds from operations, a measure used by real estate investment trusts, were $327.4 million, or $4.58 per diluted common share. That compared to $304.6 million, or $4.77 per diluted common share, in 2016.

EPR’s total revenue grew to $576 million for 2017, an increase of about 17 percent from $493.2 million in 2016.

For the fourth quarter of 2017, net income available to common shareholders was $54.7 million, or $0.74 per diluted common share. In the fourth quarter of 2016, the company posted net income available to common shareholders of $52.2 million, or $0.82 per diluted common share.

Fourth-quarter revenue grew 13 percent, to $147.7 million in 2017 from $130.8 million the year before.

The company noted that fourth-quarter earnings were negatively affected by the write-off of $9 million in revenue related to Children’s Learning Adventure, a children’s education center. Subsidiaries related to CLA filed for bankruptcy during the fourth quarter.

In October, EPR ended nine leases with various subsidiaries of CLA. Seven of those were related to completed construction, and two others were related to unimproved land.

“While our restructuring of this tenant may still occur, we felt it prudent to take a conservative approach for 2017 and remove any revenue associated with CLA for 2018,” Greg Silvers, EPR’s president and CEO, said in a conference call following the release of fourth quarters earnings.

Silvers noted that 2017 was the strongest investment year in the company’s history, with investment spending totaling $1.6 billion.

For 2018, the company is reducing its guidance for funds for operations as adjusted per diluted share to a range of $5.23 to $5.38 from a range of $5.33 to $5.48, according to the release.

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