Epr properties reports fourth quarter and 2013 year-end results
Kansas city, mo.--(business wire)--epr properties (nyse:epr) today announced operating results for the fourth quarter and the year ended december 31, 2013. three months ended december 31, 2013 total revenue was $89.4 million for the fourth quarter of 2013, representing an 8% increase from $82.5 million for the same quarter in 2012. net income available to common shareholders was $57.1 million, or $1.12 per diluted common share, for the fourth quarter of 2013 compared to $18.8 million, or $0.40 per diluted common share, for the same quarter in 2012. funds from operations (ffo) for the fourth quarter of 2013 was $63.3 million, or $1.23 per diluted common share, compared to $41.0 million, or $0.87 per diluted common share, for the same quarter in 2012. ffo as adjusted for the fourth quarter of 2013 was $49.6 million, or $0.97 per diluted common share, compared to $45.1 million, or $0.96 per diluted common share, for the same quarter in 2012. year ended december 31, 2013 total revenue was $343.1 million for the year ended december 31, 2013, representing an 8% increase from $317.8 million for the same period in 2012. net income available to common shareholders was $156.4 million, or $3.24 per diluted common share, for the year ended december 31, 2013, compared to $93.2 million, or $1.98 per diluted common share, for the same period in 2012. ffo for the year ended december 31, 2013 was $199.4 million, or $4.13 per diluted common share, compared to $168.8 million, or $3.59 per diluted common share, for the same period in 2012. ffo as adjusted for the year ended december 31, 2013 was $188.2 million, or $3.90 per diluted common share, compared to $173.8 million, or $3.69 per diluted common share, for the same period in 2012, an increase of 6% per share. david brain, president and ceo, commented, “the fourth quarter topped a year of consistently strong performance across all aspects of the business. our continued focus on non-commodity growth segments enabled a 35% investment spending increase over the prior year, solid growth in per share results and one year total shareholder return that significantly outperformed the msci u.s. reit index. additionally, we believe that we are well positioned to continue this strong trajectory over the next several years, and for 2014 we are off to a great start having previously announced an increase in our monthly dividend of over 8%.” a reconciliation of ffo to ffo as adjusted follows (unaudited, dollars in thousands, except per share amounts): portfolio update as of december 31, 2013, the company's portfolio of owned entertainment properties consisted of 11.1 million square feet and was 98% leased, including 121 megaplex theatres that were 100% leased. the company's portfolio of owned education properties consisted of 2.9 million square feet, including 48 public charter schools and one early education center, and was 100% leased. the company's portfolio of owned recreation properties was 100% leased. the company's overall owned portfolio consisted of 14.6 million square feet and was 99% leased. additionally, the company had $89.5 million in property under development and $201.3 million in land held for development. as of december 31, 2013, the company's real estate mortgage loan portfolio had a carrying value of $486.3 million and included financing provided for two entertainment properties, seven education properties and 16 recreation properties. investment update the company's investment spending in the fourth quarter of 2013 totaled $150.9 million and included investments in each of its four operating segments. total investment spending for 2013 was $403.7 million, an increase of 35% over 2012. entertainment investment spending in the fourth quarter of 2013 totaled $25.3 million, and related primarily to the acquisition of the company's partners' interest in two previously unconsolidated joint ventures as well as investments in build-to-suit construction of eight megaplex theatres that are subject to long-term triple net leases. as a result of acquiring the partners' interest in the two joint ventures, the company recorded a gain on its previously held equity interest and a gain on acquisition of $3.2 million and $4.9 million, respectively. both of these gains have been excluded from ffo and ffo as adjusted. education investment spending in the fourth quarter of 2013 totaled $39.5 million, and related to investments in build-to-suit construction of 15 public charter schools, five early childhood education centers and two private schools, all of which are subject to long-term triple net leases or long-term mortgage agreements. recreation investment spending in the fourth quarter of 2013 totaled $85.1 million, and related to fundings under the company's mortgage notes for improvements at existing ski and water-park properties as well as the acquisition of the camelback mountain resort located in tannersville, pennsylvania. in addition, recreation investment spending included investments in build-to-suit construction of seven topgolf entertainment facilities. other investment spending in the fourth quarter of 2013 totaled $1.0 million and related to the land held for development in sullivan county, new york. balance sheet update the company's balance sheet remains strong with a debt to gross assets ratio (defined as total debt to total assets plus accumulated depreciation) of 40% at december 31, 2013. the company had $8.0 million of unrestricted cash on hand and no debt outstanding under its unsecured revolving credit facility at december 31, 2013. as previously announced, on october 23, 2013, the company issued 3.6 million common shares in a registered public offering. total net proceeds, after the underwriting discount and offering expenses, were approximately $174.0 million. during the year ended december 31, 2013, the company issued an aggregate of 937,652 common shares under the direct share purchase component of its dividend reinvestment and direct share purchase plan (the plan) for total net proceeds of $46.3 million. in addition, subsequent to december 31, 2013, the company has issued an aggregate of 1,280,465 common shares under the plan for total net proceeds of $64.5 million. dividend information the company declared regular monthly cash dividends during the fourth quarter of 2013 totaling $0.79 per common share. the company also declared fourth quarter cash dividends of $0.359375 per share on its 5.75% series c cumulative convertible preferred shares, $0.5625 per share on its 9.00% series e cumulative convertible preferred shares and $0.4140625 per share on its 6.625% series f cumulative redeemable preferred shares. as previously announced, the company declared monthly cash dividends to common shareholders of $0.285 per common share for each of the months of january and february 2014. this dividend level represents an annualized dividend of $3.42 per common share, an increase of 8.2% over 2013 and the company’s fifth consecutive year with an annual dividend increase. guidance the company is confirming its 2014 guidance for ffo as adjusted per diluted share of $4.12 to $4.22 and its 2014 investment spending guidance in a range of $500 million to $550 million. quarterly and year-end supplemental the company's supplemental information package for the fourth quarter and year ended december 31, 2013 is available on the company's website at http://eprkc.com/earnings-releases-supplemental. ffo: the additional 1.9 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 9.00% 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 months and years ended december 31, 2013 and 2012 and ffo per share for the three months and year ended december 31, 2012 because the effect is not-dilutive. however, because a conversion of the 5.75% series c cumulative convertible preferred shares would be dilutive to ffo per share for the three months and year ended december 31, 2013, these adjustments have been made in the calculation of diluted ffo per share for these periods. about epr properties epr properties is a specialty real estate investment trust (reit) that invests in properties in select market segments which require unique industry knowledge, while offering the potential for stable and attractive returns. our total investments exceed $3.5 billion and our primary investment segments are entertainment, recreation and education. we adhere to rigorous underwriting and investing criteria centered on key industry and property level cash flow standards. we believe our focused niche approach provides a competitive advantage, and the potential for higher growth and better yields. further information is available at www.eprkc.com. cautionary statement concerning forward-looking statements with the exception of historical information, certain statements contained or incorporated by reference herein may contain forward-looking statements within the meaning of section 27a of the securities act of 1933, as amended (the “securities act”), and section 21e of the securities exchange act of 1934, as amended (the “exchange act”), such as those pertaining to our acquisition or disposition of properties, our capital resources, future expenditures for development projects, and our results of operations and financial condition. forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of actual events. there is no assurance the events or circumstances reflected in the forward-looking statements will occur. you can identify forward-looking statements by use of words such as “will be,” “intend,” “continue,” “believe,” “may,” “expect,” “hope,” “anticipate,” “goal,” “forecast,” “pipeline,” “anticipates,” “estimates,” “offers,” “plans,” “would” or other similar expressions or other comparable terms or discussions of strategy, plans or intentions contained or incorporated by reference herein. while references to commitments for investment spending are based on present commitments and agreements of the company, we cannot provide assurance that these transactions will be completed on satisfactory terms. in addition, references to our budgeted amounts and guidance are forward-looking statements. forward-looking statements necessarily are dependent on assumptions, data or methods that may be incorrect or imprecise. these forward-looking statements represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. many of the factors that will determine these items are beyond our ability to control or predict. for further discussion of these factors see “item 1a. risk factors” in our most recent annual report on form 10-k and, to the extent applicable, our quarterly reports on form 10-q. for these statements, we claim the protection of the safe harbor for forward-looking statements contained in the private securities litigation reform act of 1995. you are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date hereof or the date of any document incorporated by reference herein. all subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. we do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances after the date hereof.
