# EPR PROPERTIES (EPR) FY 2021 MD&A

Verbatim Item 7 Management's Discussion and Analysis from EPR PROPERTIES's 10-K for fiscal year 2021.

SEC filing source: https://www.sec.gov/Archives/edgar/data/1045450/000104545022000038/epr-20211231.htm
Accession: 0001045450-22-000038
Filing date: 2022-02-23
Report date: 2021-12-31
Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high

Company profile: /company/EPR/
All MD&A years: /company/EPR/mda/
Next year: /company/EPR/mda/fy2022/ (FY 2022)

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to promote an understanding of our financial condition, results of operations, liquidity and certain other factors that may affect future results. MD&A is provided as a supplement to, and should be read in conjunction with the consolidated financial statements and notes thereto included in this Annual Report on Form 10-K. The forward-looking statements included in this discussion and elsewhere in this Annual Report on Form 10-K involve risks and uncertainties, including anticipated financial performance, business prospects, industry trends, shareholder returns, performance of leases by tenants, performance on loans to customers and other matters, which reflect management’s best judgment based on factors currently known. See “Cautionary Statement Concerning Forward-Looking Statements.” Actual results and experience could differ materially from the anticipated results and other expectations expressed in our forward-looking statements as a result of a number of factors, including but not limited to those discussed in this Item and in Item 1A - “Risk Factors.”

Overview

Business

Our principal business objective is to enhance shareholder value by achieving predictable and increasing Funds From Operations As Adjusted ("FFOAA") and dividends per share. Our strategy is to focus on long-term investments in the Experiential sector which benefit from our depth of knowledge and relationships, and which we believe offer sustained performance throughout most economic cycles. See Item 1 - "Business" for further discussion regarding our strategic rationale for our focus on experiential properties.

Our investment portfolio includes ownership of and long-term mortgages on Experiential and Education properties. Substantially all of our owned single-tenant properties are leased pursuant to long-term, triple-net leases, under which the tenants typically pay all operating expenses of the property. Tenants at our owned multi-tenant properties are typically required to pay common area maintenance charges to reimburse us for their pro-rata portion of these costs. We also own certain experiential lodging assets structured using traditional REIT lodging structures as discussed in Item 1 - "Business."

It has been our strategy to structure leases and financings to ensure a positive spread between our cost of capital and the rentals or interest paid by our tenants. We have primarily acquired or developed new properties that are pre-leased to a single tenant or multi-tenant properties that have a high occupancy rate. We have also entered into certain joint ventures and we have provided mortgage note financing. We intend to continue entering into some or all of these types of arrangements in the foreseeable future.

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Historically, our primary challenges had been locating suitable properties, negotiating favorable lease or financing terms (on new or existing properties), and managing our portfolio as we have continued to grow. We believe our management’s knowledge and industry relationships have facilitated opportunities for us to acquire, finance and lease properties. The current economic situation created by the COVID-19 pandemic has impeded our growth in the near term while our focus has been addressing challenges brought on by the pandemic, including monitoring customer status and working with customers to help ensure long-term stability as well as assisting them in reopening plans. Following our election to terminate the Covenant Relief Period early as described below and recent improvements in the business operations of our customers, we expect our focus to return to the growth of the Company. See more discussion on the impact of the pandemic on our business below. Our business is subject to a number of risks and uncertainties, including those described in Item 1A - “Risk Factors” of this report.

As of December 31, 2021, our total assets were approximately $5.8 billion (after accumulated depreciation of approximately $1.2 billion) with properties located in 44 states and Ontario, Canada. Our total investments (a non-GAAP financial measure) were approximately $6.4 billion at December 31, 2021. See "Non-GAAP Financial Measures" for the calculation of total investments and reconciliation of total investments to "Total assets" in the consolidated balance sheet at December 31, 2021 and 2020. We group our investments into two reportable segments, Experiential and Education. As of December 31, 2021, our Experiential investments comprised $5.8 billion, or 91%, and our Education investments comprised $0.6 billion, or 9%, of our total investments.

As of December 31, 2021, our Experiential segment consisted of the following property types (owned or financed):

•175 theatre properties;

•56 eat & play properties (including seven theatres located in entertainment districts);

•18 attraction properties;

•11 ski properties;

•eight experiential lodging properties;

•one gaming property;

•three cultural properties; and

•seven fitness & wellness properties.

As of December 31, 2021, our owned Experiential real estate portfolio consisted of approximately 19.0 million square feet, was 96.1% leased and included $42.4 million in property under development and $20.2 million in undeveloped land inventory.

As of December 31, 2021, our Education segment consisted of the following property types (owned or financed):

•65 early childhood education center properties; and

•nine private school properties.

As of December 31, 2021, our owned Education real estate portfolio consisted of approximately 1.4 million square feet, and was 100% leased.

The combined owned portfolio consisted of 20.4 million square feet and was 96.4% leased.

COVID-19 Update

We continue to be subject to risks and uncertainties resulting from the COVID-19 pandemic. The COVID-19 pandemic severely impacted global economic activity and caused significant volatility and negative pressure in financial markets. In response to the COVID-19 pandemic, many jurisdictions within the United States and abroad instituted health and safety measures, including quarantines, and mandated business and school closures and travel restrictions. As a result, the COVID-19 pandemic severely impacted experiential real estate properties, given that such properties involve congregate social activity and discretionary consumer spending. Although many of these

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health and safety measures have been lifted, the extent of the impact of the COVID-19 pandemic on our business still remains highly uncertain and difficult to predict.

As of December 31, 2021, we had no properties closed due to COVID-19 restrictions. The continuing impact of the COVID-19 pandemic on our business will depend on several factors, including, but not limited to, the scope, severity and duration or any resurgence of the pandemic (including COVID-19 variants), the actions taken to contain the outbreak or any resurgence or mitigate their impacts, the distribution and efficacy of vaccines and therapeutics, the ability of communities to achieve herd immunity, the public’s confidence in the health and safety measures implemented by our tenants and borrowers, the continuing direct and indirect economic effects of the outbreak and containment measures, and the ability of our tenants and borrowers to recover from the negative economic impacts of the pandemic as it subsides and, in many cases, service elevated levels of debt resulting from the pandemic, all of which are uncertain and cannot be predicted. During 2020 and 2021, the COVID-19 pandemic negatively affected our business, and could continue to have material adverse effects on our financial condition, results of operations and cash flows.

Our consolidated financial statements reflect estimates and assumptions made by management that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods presented. We considered the impact of the COVID-19 pandemic on the assumptions and estimates used in determining our financial condition and results of operations for the years ended December 31, 2021 and 2020.

The following summarizes the impacts to our financial statements during the year ended December 31, 2021 arising out of or related to the COVID-19 pandemic:

•We continued to recognize revenue on a cash basis for certain tenants including AMC and Regal.

•We reduced rental revenue by $11.0 million due to rent abatements.

•As of December 31, 2021, we have deferred amounts due from tenants of approximately $27.3 million and amounts due from borrowers of $0.4 million that are booked as receivables. Additionally, we have amounts due from tenants that were not booked as receivables because the full amounts were not deemed probable of collection as a result of the COVID-19 pandemic. The amounts not booked as receivables remain obligations of the tenants and will be recognized as revenue when any such amounts are received. The repayment terms for all of these deferments vary by tenant or borrowers.

•We repaid the remaining $590.0 million in borrowings that we had drawn on our line of credit in 2020 as a precautionary measure to increase our cash position at that time as a result of the uncertainty caused by the COVID-19 pandemic.

•Through July 12, 2021, we remained in the Covenant Relief Period under our Second Amended and Restated Consolidated Credit Agreement, as amended, that governed our unsecured revolving credit facility and our unsecured term loan facility ("Second Consolidated Credit Agreement") and the agreement that governs our private placement notes ("Note Purchase Agreement"). During the Covenant Relief Period, our obligation to comply with certain covenants under these agreements was waived in light of the uncertainty related to impacts of the COVID-19 pandemic on us and our tenants and borrowers. We paid higher interest costs until the termination of the Covenant Relief Period. The Second Consolidated Credit Agreement and Note Purchase Agreement also imposed additional restrictions on us during the Covenant Relief Period, including limitations on making investments, incurring indebtedness, making capital expenditures, paying dividends or making other distributions, repurchasing our shares, voluntarily prepaying certain indebtedness, encumbering certain assets and maintaining a minimum liquidity amount, in each case subject to certain exceptions. The term "Covenant Relief Period," as used in this Annual Report on Form 10-K, generally means the period of time beginning on June 29, 2020 and ending on (i) December 31, 2021, in the case of our Second Consolidated Credit Agreement, or (ii) October 1, 2021 (subject to extension to January 1, 2022 at our election, subject to certain conditions), in the case of our Note Purchase Agreement governing our private placement notes. We had the right under certain circumstances to terminate the Covenant Relief Period earlier, which we exercised on July 12, 2021.

•On July 12, 2021, we provided notice of our election to terminate the Covenant Relief Period early. Our election to terminate the Covenant Relief Period early meant that, effective July 13, 2021, the interest rates

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on the debt governed by these agreements returned to the previous levels defined in the agreements, in each case based on our unsecured debt ratings. By terminating the Covenant Relief Period, we were also released from certain restrictions under these agreements, including restrictions on investments, capital expenditures, incurrences of indebtedness and payment of dividends.

•In connection with amending our Second Consolidated Credit Agreement and Note Purchase Agreement to provide for the Covenant Relief Period discussed above, certain of our key subsidiaries guaranteed our obligations based on our unsecured debt ratings. During the year ended December 31, 2021, we received an investment grade rating from S&P Global Ratings on our unsecured debt. As a result, the subsidiary guarantors were released from their guarantees under these debt agreements in accordance with the terms of such agreements. Additionally, during the three months ended December 31, 2021, Moody's revised its outlook on our investment grade rating related to our unsecured debt from negative to stable.

•During the year ended December 31, 2021, we decreased our expected credit losses by $22.0 million primarily due to cash collections from a borrower on a previously fully reserved note and the release of our commitments to fund additional amounts to the borrower as well as a change in the expectation in the credit loss model of the timing of the economic recovery from the impacts of the COVID-19 pandemic.

The monthly cash dividends to common shareholders were temporarily suspended following the common share dividend paid on May 15, 2020 to shareholders of record as of April 30, 2020. On July 13, 2021, following termination of the Covenant Relief Period, we resumed regular monthly cash dividends to common shareholders. During the year ended December 31, 2021, we declared cash dividends totaling $1.50 per common share.

Collections of rent and interest were impacted by the COVID-19 pandemic but increased steadily throughout 2021. During the three months ended December 31, 2021, tenants and borrowers paid approximately 97% of contractual cash revenue. During the year ended December 31, 2021, we collected $63.8 million of deferred rent and interest from accrual basis tenants and borrowers that reduced related accounts and interest receivable and approximately $7.0 million in deferred rent from cash basis tenants and from tenants for which the deferred payments were not previously recognized as revenue. Contractual cash revenue is an operational measure and represents aggregate cash payments for which we are entitled under existing contracts, excluding the impact of any temporary abatements or deferrals, percentage rent (rents received over base amounts), non-cash revenue, and revenue from taxable REIT subsidiaries ("TRSs") and investments in joint ventures. While deferments for this and future periods delay rent or mortgage payments, these deferments generally do not release customers from the obligation to pay the deferred amounts in the future. Deferred rent amounts are reflected in our financial statements as accounts receivable if collection is determined to be probable or will be recognized when received as variable lease payments if collection is determined to not be probable, while deferred mortgage payments are reflected as mortgage notes and related accrued interest receivable, less any allowance for credit loss. Certain agreements with tenants where remaining lease terms are extended, or other changes are made that do not qualify for the treatment in the Financial Accounting Standards Board ("FASB") Staff Q&A on Topic 842 and Topic 840: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic, are treated as lease modifications. In these circumstances upon an executed lease modification, if the tenant is not being recognized on a cash basis, the contractual rent reflected in accounts receivable and the straight-line rent receivable will be amortized over the remaining term of the lease against rental revenue. In limited cases, tenants may be entitled to the abatement of rent during governmentally imposed prohibitions on business operations which is recognized in the period to which it relates, or we may provide rent concessions to tenants. In cases where we provide concessions to tenants to which they are not otherwise entitled, those amounts are recognized in the period in which the concession is granted unless the changes are accounted for as lease modifications.

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Operating Results

Our total revenue, net income (loss) available to common shareholders per diluted share and FFOAA per diluted share (a non-GAAP financial measure) are detailed below for the years ended December 31, 2021 and 2020 (dollars in millions, except per share information):

[[GREPCENT_TABLE]]
[["","Year ended December 31,"],["","2021","","2020","","Change"],["Total revenue","$","531.7","","","$","414.7","","","28","%"],["Net income (loss) available to common shareholders per diluted share","1.00","","","(2.05)","","","149","%"],["FFOAA per diluted share","3.09","","","1.43","","","116","%"]]
[[/GREPCENT_TABLE]]

The major factors impacting our results for the year ended December 31, 2021, as compared to the year ended December 31, 2020 were as follows:

•The effects of the COVID-19 pandemic as described above;

•The effect of write-offs of receivables from tenants and straight-line receivables totaling $65.1 million recognized during the year ended December 31, 2020;

•The effect of property acquisitions as well as dispositions and mortgage note payoffs that occurred in 2021 and 2020;

•The change in other income and other expense primarily due to the government-required closure of the Kartrite Resort and Indoor Waterpark in Sullivan County, New York due to the COVID-19 pandemic in mid-March of 2020 and the re-opening of this property in July of 2021;

•The increase in percentage rents;

•The increase in costs associated with loan refinancing or payoff and general and administrative expense;

•The decrease in interest expense due to the repayment of our unsecured term loan facility and revolving credit facility;

•The decrease in severance expense, transaction costs, credit loss (benefit) expense, impairment charges and income tax expense.

For further detail on items impacting our operating results, see section below titled "Results of Operations". FFOAA is a non-GAAP financial measure. For the definitions and further details on the calculations of FFOAA and certain other non-GAAP financial measures, see section below titled "Non-GAAP Financial Measures."

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions in certain circumstances that affect amounts reported in the accompanying consolidated financial statements and related notes. In preparing these financial statements, management has made its best estimates and assumptions that affect the reported assets and liabilities and the reported amounts of revenues and expenses during the reporting periods. The most significant assumptions and estimates relate to the valuation of real estate, accounting for real estate acquisitions, assessing the collectibility of receivables and the credit loss related to mortgage and other notes receivable. Application of these assumptions requires the exercise of judgment as to future uncertainties and, as a result, actual results could differ from these estimates.

Impairment of Real Estate Values

We are required to make subjective assessments as to whether there are impairments in the value of our real estate investments. These estimates of impairment may have a direct impact on our consolidated financial statements. We assess the carrying value of our real estate investments whenever events or changes in circumstances indicate that the carrying amount of a property may not be recoverable. Certain factors may indicate that impairments exist which include, but are not limited to, under-performance relative to projected future operating results, change in the time period we expect to hold the property, tenant difficulties and significant adverse industry or market economic trends. If an indicator of possible impairment exists, the property is evaluated for impairment by completing the undiscounted cash flow test, which compares the carrying amount of the real estate investment to the estimated

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future cash flows (undiscounted and without interest charges), including the residual value of the real estate. If an impairment is indicated, a loss will be recorded for the amount by which the carrying value of the asset exceeds its estimated fair value.

The assumptions used to derive the estimated future cash flows for the undiscounted cash flow test are based on capitalization rates, anticipated future market rent and our anticipated hold period, all of which are subjective. Market rent assumptions used for the estimated future cash flows as well as the capitalization rate used to estimate the residual value of the real estate can fluctuate based on economic and industry specific factors. Changes in these assumptions could materially impact the result of the undiscounted cash flow test. If there is a shift in economic conditions, or a change in our property strategy, including a reduction in our anticipated hold period, these changes could materially impact the estimated undiscounted cash flows and lead to an impairment loss. The loss is calculated based upon the difference between the fair value and the carrying value of the property. We generally use the income approach to derive the fair value of the property, which includes estimates for market rent, capitalization rates, and discount rates that are subjective and can be impacted by a lack of comparable transactions. We may also take into account real estate purchase offers to derive the fair value of the real estate if it is anticipated that the property may be sold.

Real Estate Acquisitions

Upon acquisition of real estate properties, we evaluate the acquisition to determine if it is a business combination or an asset acquisition.

Generally, our acquisitions are considered asset acquisitions. If the acquisition is determined to be an asset acquisition, we allocate the purchase price and other related costs incurred to the acquired tangible assets and identified intangible assets and liabilities on a relative fair value basis. Typically, relative fair values are based on recent independent appraisals or methods similar to those used by independent appraisers, as well as management judgment. In addition, acquisition-related costs incurred for asset acquisitions are capitalized.

The methods used to derive the relative fair value of the acquired tangible and intangible assets and liabilities generally include the income approach, cost approach and sales comparison approach. The assumptions used in these approaches include estimates for market rent, capitalization rates and discount rates that are subjective and can be impacted by a lack of comparable transactions. Market rent assumptions, capitalization rates and discount rates used in the valuation of real estate can fluctuate based on economic and industry specific factors.

Collectibility of Lease Receivables

Our 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. We regularly evaluate the collectibility of our receivables on a lease by lease basis. The evaluation primarily consists of reviewing past due account balances and considering such factors as the credit quality of our tenants, historical trends of the tenant, property level metrics, current economic conditions and changes in customer payment terms. We suspend revenue recognition when the collectibility of amounts due are no longer probable and record a direct write-off of the receivable to revenue.

To determine if the collection of lease receivables is probable, we review our tenants' financial condition, including estimates of their expected future operating results, which are subjective. The tenant's current and estimated future operating results, the tenant's ability to obtain additional financing, as well as the ability and intention to pay lease receivables can vary based on economic conditions and industry specific factors. If economic conditions or the tenant's financial condition or results decline, the anticipated collection of outstanding lease receivables may not be probable and could result in the suspension of revenue recognition and the write off of the lease receivable.

Collectibility of Mortgage and Notes Receivables

Our mortgage and notes receivables consist of loans originated by us and the related accrued and unpaid interest income. We regularly evaluate the collectibility of our receivables by considering such factors as the credit quality of our borrowers, historical trends of the borrower, our historical loss experience, current portfolio, market and economic conditions and changes in borrower payment terms. We estimate our current expected credit losses on a

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loan-by-loan basis using a forward-looking commercial real estate forecasting tool. We record credit loss expense and reduce our mortgage note and note receivables balances by the allowance for credit losses on a quarterly basis in accordance with ASC 326. In the event we have a past due mortgage note or note receivable and we determine it is collateral dependent, we measure expected credit losses based on the fair value of the collateral. If foreclosure is deemed probable, and we expect to sell rather than operate the collateral, we adjust the fair value of the collateral for the estimated costs to sell. Prior to 2020, we evaluated the collectibility of our mortgage and notes receivables to determine whether the loan was impaired and if it was probable that we would be unable to collect all amounts due according to the contractual terms.

The significant assumptions used in the forecasting tool to estimate our current expected credit losses include loan level assumptions such as loan to value ratio and debt service coverage ratio, as well as market level assumptions such as unemployment rates, interest rates and real estate price indices. Changes in these assumptions could materially impact the allowance for credit losses. If economic conditions or the borrower's financial condition declines, this could result in additional credit loss expense, the suspension of interest income recognition or the write off of the receivables.

If a loan is determined to be collateral dependent, the assumptions used to determine the fair value of the underlying collateral vary based on the type of collateral that secures the mortgage or note receivable. The fair value may be impacted based on economic factors, an estimate of future operating cash flows of the collateral and capitalization rates, that are subjective and can be impacted by a lack of comparable transactions. Changes in these assumptions could materially impact the estimated value of the collateral and lead to increased credit loss expense.

Recent Developments

Investment Spending

Our investment spending during the years ended December 31, 2021 and 2020 totaled $133.5 million and $85.1 million, respectively, and is detailed below (in thousands):

[[GREPCENT_TABLE]]
[["For the Year Ended December 31, 2021"],["Investment Type","Total Investment Spending","New Development","Re-development","Asset Acquisition","Mortgage Notes or Notes Receivable","Investment in Joint Ventures"],["Experiential:"],["Theatres","$","4,633","","$","4,182","","$","451","","$","\u2014","","$","\u2014","","$","\u2014"],["Eat & Play","58,387","","9,347","","121","","48,919","","\u2014","","\u2014"],["Attractions","56","","\u2014","","56","","\u2014","","\u2014","","\u2014"],["Ski","6,540","","\u2014","","\u2014","","\u2014","","6,540","","\u2014"],["Experiential Lodging","57,367","","17,029","","301","","\u2014","","\u2014","","40,037"],["Cultural","4,399","","\u2014","","20","","\u2014","","4,379","","\u2014"],["Fitness & Wellness","2,124","","\u2014","","\u2014","","\u2014","","2,124","","\u2014"],["Total Experiential","133,506","","30,558","","949","","48,919","","13,043","","40,037"],["Education:"],["Total Education","\u2014","","\u2014","","\u2014","","\u2014","","\u2014","","\u2014"],["Total Investment Spending","$","133,506","","$","30,558","","$","949","","$","48,919","","$","13,043","","$","40,037"]]
[[/GREPCENT_TABLE]]

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[[GREPCENT_TABLE]]
[["For the Year Ended December 31, 2020"],["Investment Type","Total Investment Spending","New Development","Re-development","Asset Acquisition","Mortgage Notes or Notes Receivable","Investment in Joint Ventures"],["Experiential:"],["Theatres","$","33,162","","$","5,760","","$","5,183","","$","22,219","","$","\u2014","","$","\u2014"],["Eat & Play","19,679","","18,852","","827","","\u2014","","\u2014","","\u2014"],["Attractions","669","","\u2014","","669","","\u2014","","\u2014","","\u2014"],["Ski","2,088","","\u2014","","\u2014","","\u2014","","2,088","","\u2014"],["Experiential Lodging","17,114","","13,775","","1,649","","\u2014","","\u2014","","1,690"],["Cultural","6,293","","\u2014","","159","","\u2014","","6,134","","\u2014"],["Fitness & Wellness","6,049","","\u2014","","\u2014","","\u2014","","6,049","","\u2014"],["Total Experiential","85,054","","38,387","","8,487","","22,219","","14,271","","1,690"],["Education:"],["Early Childhood Education Centers","3","","\u2014","","\u2014","","\u2014","","3","","\u2014"],["Total Education","3","","\u2014","","\u2014","","\u2014","","3","","\u2014"],["Total Investment Spending","$","85,057","","$","38,387","","$","8,487","","$","22,219","","$","14,274","","$","1,690"]]
[[/GREPCENT_TABLE]]

The above amounts include $1.6 million and $1.2 million in capitalized interest for the years ended December 31, 2021 and 2020, respectively, and $0.3 million in capitalized other general and administrative direct project costs for both the years ended December 31, 2021 and 2020. Excluded from the table above is $4.5 million and $11.3 million of maintenance capital expenditures and other spending for the years ended December 31, 2021 and 2020, respectively.

We limited our investment spending during the years ended December 31, 2021 and 2020 to enhance our liquidity position in light of the negative impact of the COVID-19 pandemic. As discussed in more detail in Note 8 to the consolidated financial statements included in this Annual Report on Form 10-K, on July 12, 2021, we provided notice of our election to terminate the Covenant Relief Period early. Effective July 13, 2021, we were released from certain restrictions under the credit facilities and private placement notes that limited our investments and capital expenditures.

Dispositions

During the year ended December 31, 2021, we completed the sale of four theatre properties, two ski properties, one eat & play property and four land parcels for net proceeds totaling $96.1 million and recognized a combined gain on sale of $17.9 million.

On March 22, 2021, we received $5.1 million in proceeds representing prepayment in full on a mortgage note receivable that was secured by a private school property. No prepayment fee was received in connection with this note payoff.

Impairment Charges

During the year ended December 31, 2021, we received various offers to purchase two vacant properties. As a result, we reassessed the expected holding periods of such properties, and determined that the estimated cash flows were not sufficient to recover the carrying values of these properties. Accordingly, we recognized impairment charges of $2.7 million on the real estate investments for these two properties.

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Capital Markets Activities

In addition to exiting the Covenant Relief Period early and paying back the remaining borrowings on our line of credit, during the year ended December 31, 2021, we issued $400.0 million in new senior unsecured notes, and paid off our $400.0 million term loan and $275.0 million of senior notes due in 2023 (including a make-whole premium). We also entered into a new amended and restated senior unsecured revolving credit facility, and subsequent to December 31, 2021, amended our private placement note agreement primarily to capture the improvements in valuation of certain investment types included in the new revolving credit facility. See discussion below in Liquidity and Capital Resources and Note 8 to the consolidated financial statements in this Annual Report on Form 10-K for additional information.

Results of Operations

Year ended December 31, 2021 compared to year ended December 31, 2020

Analysis of Revenue

The following table summarizes our total revenue (dollars in thousands):

[[GREPCENT_TABLE]]
[["","","Year Ended December 31,","","Change"],["","","2021","","2020"],["Minimum rent (1)","","$","439,128","","","$","372,546","","","$","66,582"],["Percentage rent (2)","","14,046","","","8,554","","","5,492"],["Straight-line rent (3)","","5,664","","","(24,550)","","","30,214"],["Tenant reimbursements (4)","","18,721","","","15,111","","","3,610"],["Other rental revenue","","1,323","","","515","","","808"],["Total Rental Revenue","","$","478,882","","","$","372,176","","","$","106,706"],["Other income (5)","","18,816","","","9,139","","","9,677"],["Mortgage and other financing income","","33,982","","","33,346","","","636"],["Total revenue","","$","531,680","","","$","414,661","","","$","117,019"]]
[[/GREPCENT_TABLE]]

(1) For the year ended December 31, 2021 compared to the year ended December 31, 2020, the increase in minimum rent resulted primarily from an increase of $86.1 million related to rental revenue on existing properties including improved collections of rent being recognized on a cash basis, less receivable write-offs as well as scheduled rent increases. In addition, there was an increase in minimum rent of $7.7 million related to property acquisitions and developments completed in 2021 and 2020. This was partially offset by a decrease in rental revenue of $22.1 million from property dispositions and $5.1 million due to vacant properties.

During the year ended December 31, 2021, we renewed eight lease agreements on approximately 460 thousand square feet. We experienced an increase of 8.1% in rental rates and paid no leasing commissions with respect to these lease renewals.

(2) The increase in percentage rent (amounts above base rent) for the year ended December 31, 2021 compared to the year ended December 31, 2020 was due to higher percentage rent recognized from our gaming tenant, golf entertainment tenant, one ski tenant and two attraction tenants. Additionally, higher percentage rent was recognized due to one early childhood education center tenant based on a restructured lease. These increases were offset by lower percentage rent recognized during the year ended December 31, 2021 from three private school properties that were disposed of during the fourth quarter of 2020.

(3) The increase in straight-line rent for the year ended December 31, 2021 compared to the year ended December 31, 2020 was primarily due to write-offs totaling $38.0 million recognized during the year ended December 31, 2020, which was comprised of $26.5 million of straight-line accounts receivable and $11.5 million of sub-lessor ground lease straight-line accounts receivable, due to the COVID-19 pandemic. This was partially offset by a reduction in straight-line rental revenue due to revenue from several tenants being recognized on a cash basis.

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(4) The increase in tenant reimbursements for the year ended December 31, 2021 compared to the year ended December 31, 2020 was primarily due to increased collections from cash basis tenants as well as a decrease in COVID-19 contractual abatements.

(5) The increase in other income for the year ended December 31, 2021, related to an increase in operating income as a result of the re-opening of the Kartrite Resort, which was previously closed due to the COVID-19 pandemic as well as operating income from two theatre properties.

Analysis of Expenses and Other Line Items

The following table summarizes our expenses and other line items (dollars in thousands):

[[GREPCENT_TABLE]]
[["","","Year Ended December 31,","","Change"],["","","2021","","2020"],["Property operating expense","","$","56,739","","","$","58,587","","","$","(1,848)"],["Other expense (1)","","21,741","","","16,474","","","5,267"],["General and administrative expense","","44,362","","","42,596","","","1,766"],["Severance expense (2)","","\u2014","","","2,868","","","(2,868)"],["Costs associated with loan refinancing or payoff (3)","","25,451","","","1,632","","","23,819"],["Interest expense, net (4)","","148,095","","","157,675","","","(9,580)"],["Transaction costs (5)","","3,402","","","5,436","","","(2,034)"],["Credit loss (benefit) expense (6)","","(21,972)","","","30,695","","","(52,667)"],["Impairment charges (7)","","2,711","","","85,657","","","(82,946)"],["Depreciation and amortization (8)","","163,770","","","170,333","","","(6,563)"],["Equity in loss from joint ventures","","(5,059)","","","(4,552)","","","(507)"],["Impairment charges on joint ventures (9)","","\u2014","","","(3,247)","","","3,247"],["Gain on sale of real estate (10)","","17,881","","","50,119","","","(32,238)"],["Income tax expense (11)","","(1,597)","","","(16,756)","","","15,159"],["Preferred dividend requirements","","(24,134)","","","(24,136)","","","2"]]
[[/GREPCENT_TABLE]]

(1) The increase in other expense for the year ended December 31, 2021 related to an increase in operating expenses as a result of the re-opening of the Kartrite Resort, which was previously closed due to the COVID-19 pandemic as well as operating expenses from two theatre properties.

(2) Severance expense for the year ended December 31, 2020 related to the retirement of our former Senior Vice President - Asset Management. See Note 13 to the consolidated financial statements included in this Annual Report on Form 10-K for further detail. There was no severance expense for the year ended December 31, 2021.

(3) Costs associated with loan refinancing or payoff for the year ended December 31, 2021 related to the pay-off of our unsecured term loan facility and the termination of related interest rate swaps as well as the redemption of all of our $275.0 million 5.25% Senior Notes due in 2023 (including a make-whole premium). Costs associated with loan refinancing or payoff for the year ended December 31, 2020 related to fees paid to third parties in connection with amendments to our Second Consolidated Credit Agreement and Note Purchase Agreement.

(4) The decrease in interest expense, net for the year ended December 31, 2021 compared to the year ended December 31, 2020, resulted primarily from a decrease in average borrowings. This was partially offset by a decrease in interest income from short-term investments related to cash and cash equivalents on hand.

(5) The decrease in transaction costs for the year ended December 31, 2021 compared to the year ended December 31, 2020 was primarily due to costs related to the transfer of our CLA properties to Crème recognized during the year ended December 31, 2020.

(6) The change in credit loss (benefit) expense for the year ended December 31, 2021 compared to the year ended December 31, 2020 was primarily due to repayments of $8.4 million from a borrower on a previously fully reserved

45

note receivable and the release from an additional $8.5 million in funding commitments. Additionally, the decrease in credit loss expense was due to a change in the expectation in the credit loss model of the timing of the economic recovery from the impacts of the COVID-19 pandemic as well as other factors.

(7) Impairment charges recognized during the year ended December 31, 2021, related to two vacant properties that we intend to sell and we determined that the cash flows were not sufficient to recover the carrying value. Impairment charges recognized during the year ended December 31, 2020, related to nine properties with revised estimated undiscounted cash flows and shorter hold periods as a result of the COVID-19 pandemic. Impairment charges recognized during the year ended December 31, 2020 were comprised of $70.7 million of impairments of real estate investments and $15.0 million of impairments of operating lease right-of-use assets.

(8) The decrease in depreciation and amortization expense for the year ended December 31, 2021 compared to the year ended December 31, 2020 resulted primarily from property dispositions that occurred during 2020 and 2021 as well as property impairments. This decrease was partially offset by acquisitions and developments completed in 2020 and 2021.

(9) Impairment charges on joint ventures for the year ended December 31, 2020 related to other-than-temporary impairment charges on three theatre projects located in China. See Note 7 to the consolidated financial statements included in this Annual Report on Form 10-K for additional information.

(10) The gain on sale of real estate for the year ended December 31, 2021 related to the sale of four theatre properties, two ski properties, one eat & play property and four land parcels. The gain on sale of real estate for the year ended December 31, 2020 related to the exercise of a tenant purchase option on six private schools and four early childhood education centers as well as the sale of three early education center properties, four experiential properties and two land parcels.

(11) The decrease in income tax expense for the year ended December 31, 2021 compared to income tax expense for the year ended December 31, 2020 is primarily related to the recognition of a full valuation allowance on deferred tax assets for our Canadian operations and certain TRSs as a result of the economic uncertainty caused by the COVID-19 pandemic.

Year ended December 31, 2020 compared to year ended December 31, 2019

Analysis of Revenue

The following table summarizes our total revenue (dollars in thousands):

[[GREPCENT_TABLE]]
[["","","Year Ended December 31,","","Change"],["","","2020","","2019"],["Minimum rent (1)","","$","372,546","","","$","544,279","","","$","(171,733)"],["Percentage rent (2)","","8,554","","","14,962","","","(6,408)"],["Straight-line rent (3)","","(24,550)","","","10,557","","","(35,107)"],["Tenant reimbursements (4)","","15,111","","","22,864","","","(7,753)"],["Other rental revenue","","515","","","360","","","155"],["Total Rental Revenue","","$","372,176","","","$","593,022","","","$","(220,846)"],["Other income (5)","","9,139","","","25,920","","","(16,781)"],["Mortgage and other financing income","","33,346","","","33,027","","","319"],["Total revenue","","$","414,661","","","$","651,969","","","$","(237,308)"]]
[[/GREPCENT_TABLE]]

(1) For the year ended December 31, 2020 compared to the year ended December 31, 2019, the decrease in minimum rent resulted primarily from the impact of the COVID-19 pandemic, with approximately $176.0 million related to tenants with rent recognized on a cash basis or as restructured, as well as for properties with deferred rent not recognized because collection was determined not probable or there were rent abatements. In addition, there was a decrease in rental revenue of $7.0 million from property dispositions not classified in discontinued operations. This

46

was partially offset by an increase in minimum rent of $5.5 million related to property acquisitions and developments completed in 2020 and 2019 and $5.8 million in increases on existing properties. Minimum rent for the year ended December 31, 2020 included $5.2 million in variable rent from tenants that paid a portion of minimum rent based on a percentage of gross revenue.

During the year ended December 31, 2020, we renewed 15 lease agreements on approximately 0.9 million square feet. These extension agreements (which exclude restructured agreements with AMC) were negotiated with our tenants in conjunction with rent deferrals as a result of the impact of the COVID-19 pandemic. The extension periods for these agreements will begin in future periods, between 2021 and 2031. Upon the commencement of the extension periods, we expect a weighted average increase of approximately 8% in rental rates. We paid no leasing commissions with respect to these lease renewals.

(2) The decrease in percentage rent (amounts above base rent) related primarily to lower percentage rent recognized during the year ended December 31, 2020 from five theatre properties, one ski property, five attraction properties, one eat and play tenant and one early education tenant. These decreases were partially offset by increases in percentage rent from one private school tenant.

(3) For the year ended December 31, 2020 compared to the year ended December 31, 2019, the decrease in straight-line rent resulted primarily from write-offs totaling $38.0 million during the year ended December 31, 2020, which was comprised of $26.5 million of straight-line accounts receivable and $11.5 million of sub-lessor ground lease straight-line accounts receivable, due to the COVID-19 pandemic. This was partially offset by an increase in straight-line rent related to property acquisitions and developments completed in 2020 and 2019.

(4) The decrease in tenant reimbursements during the year ended December 31, 2020 was primarily due to COVID-19 contractual abatements (which in certain cases included tenant reimbursements), tenant deferrals that were not recognized because collection was not probable and vacancies. Additionally, during the year ended December 31, 2020, we had $4.7 million less in the gross-up of tenant reimbursed expenses for property taxes at various properties as certain tenants at these properties are now paying these costs directly.

(5) The decrease in other income for the year ended December 31, 2020 related primarily to a decrease in operating income as a result of COVID-19 closures at the Kartrite Resort and a theatre property.

47

Analysis of Expenses and Other Line Items

The following table summarizes our expenses and other line items (dollars in thousands):

[[GREPCENT_TABLE]]
[["","","Year Ended December 31,","","Change"],["","","2020","","2019"],["Property operating expense (1)","","$","58,587","","","$","60,739","","","$","(2,152)"],["Other expense (2)","","16,474","","","29,667","","","(13,193)"],["General and administrative expense (3)","","42,596","","","46,371","","","(3,775)"],["Severance expense","","2,868","","","2,364","","","504"],["Costs associated with loan refinancing or payoff (4)","","1,632","","","38,269","","","(36,637)"],["Interest expense, net (5)","","157,675","","","142,002","","","15,673"],["Transaction costs (6)","","5,436","","","23,789","","","(18,353)"],["Credit loss expense (7)","","30,695","","","\u2014","","","30,695"],["Impairment charges (8)","","85,657","","","2,206","","","83,451"],["Depreciation and amortization (9)","","170,333","","","158,834","","","11,499"],["Equity in loss from joint ventures (10)","","(4,552)","","","(381)","","","(4,171)"],["Impairment charges on joint ventures (11)","","(3,247)","","","\u2014","","","(3,247)"],["Gain on sale of real estate (12)","","50,119","","","4,174","","","45,945"],["Income tax (expense) benefit (13)","","(16,756)","","","3,035","","","(19,791)"],["Income from discontinued operations before other items (14)","","\u2014","","","37,241","","","(37,241)"],["Impairment on public charter school portfolio sale (15)","","\u2014","","","(21,433)","","","21,433"],["Gain on sale of real estate from discontinued operations (16)","","\u2014","","","31,879","","","(31,879)"],["Preferred dividend requirements","","(24,136)","","","(24,136)","","","\u2014"]]
[[/GREPCENT_TABLE]]

(1) Our property operating expenses arise from the operations of our entertainment districts and other specialty properties as well as operating ground lease expense and the gross-up of tenant reimbursed expenses. The decrease in property operating expenses resulted from bad debt expense booked in 2019, as well as a decrease in the gross-up of tenant reimbursed expenses for property taxes at various properties as certain tenants at these properties are now paying these costs directly. These decreases were partially offset by an increase in costs due to higher vacancies.

(2) The decrease in other expense for the year ended December 31, 2020 related to a decrease in operating expenses as a result of COVID-19 closures at the Kartrite Resort and a theatre property.

(3) The decrease in general and administrative expense for the year ended December 31, 2020 was primarily due to a decrease in payroll and benefits costs, as well as travel expenses, partially offset by increases in professional fees.

(4) Costs associated with loan refinancing or payoff for the year ended December 31, 2020 related to fees paid to third parties in connection with amendments to our Second Consolidated Credit Agreement and Note Purchase Agreement. Costs associated with loan refinancing or payoff for the year ended December 31, 2019 related to the tender and redemption of the 5.75% Senior Notes due 2022.

(5) The increase in our net interest expense for the year ended December 31, 2020 compared to the year ended December 31, 2019 resulted primarily from an increase in average borrowings as well as a decrease in interest cost capitalized on development projects. This was partially offset by a decrease in our weighted average interest rate on outstanding debt and an increase in interest income from short-term investments related to cash and cash equivalents on hand.

(6) The decrease in transaction costs for the year ended December 31, 2020 compared to the year ended December 31, 2019 was primarily due to pre-opening costs related to the Kartrite Resort, which opened in May 2019, as well as less costs related to the transfer of our CLA properties to Crème.

(7) Credit loss expense for the year ended December 31, 2020 was recognized in conjunction with our implementation of the new current expected credit losses standard (Topic 326). In addition, credit loss expense for the year ended December 31, 2020 included $25.5 million of credit loss expense that was recognized to reserve the

48

outstanding principal balance of notes receivable from one borrower and an unfunded commitment to fund an additional $12.9 million, as a result of recent changes in the borrower's financial status due to the COVID-19 pandemic.

(8) Impairment charges recognized during the year ended December 31, 2020, related to nine properties with revised estimated undiscounted cash flows and shorter hold periods as a result of the COVID-19 pandemic. Impairment charges recognized during the year ended December 31, 2020 were comprised of $70.7 million of impairments of real estate investments and $15.0 million of impairments of operating lease right-of-use assets. Impairment charges recognized during the year ended December 31, 2019, related to one theatre property.

(9) The increase in depreciation and amortization expense resulted primarily from acquisitions and developments completed in 2019 and 2020 as well as the acceleration of amortization on an in-place lease intangible related to a vacant property. This increase was partially offset by decreases related to property dispositions that occurred during 2019 and 2020.

(10) The increase in equity in loss from joint ventures resulted primarily from losses recognized at our joint venture projects located in St. Petersburg Beach, Florida, and our joint ventures in three theatre projects in China. These properties were negatively impacted due to COVID-19 closures.

(11) Impairment charges on joint ventures for the year ended December 31, 2020 related to other-than-temporary impairment charges on three theatre projects located in China. See Note 7 to the consolidated financial statements included in this Annual Report on Form 10-K for additional information.

(12) The gain on sale of real estate for the year ended December 31, 2020 related to the exercise of a tenant purchase option on six private schools and four early childhood education centers as well as the sale of three early education center properties, four experiential properties and two land parcels. The gain on sale of real estate for the year ended December 31, 2019 related to the sale of one early childhood education center property, one attraction property and four land parcels.

(13) The increase in income tax expense for the year ended December 31, 2020 compared to income tax benefit for the year ended December 31, 2019 is primarily related to the recognition of a full valuation allowance on deferred tax assets for our Canadian operations and certain TRSs as a result of the economic uncertainty caused by the COVID-19 pandemic.

(14) Income from discontinued operations before other items for the year ended December 31, 2019 related to the operating results of all public charter school investments disposed in 2019. See Note 16 to the consolidated financial statements included in this Annual Report on Form 10-K for additional information on discontinued operations.

(15) Impairment on public charter school portfolio sale for the year ended December 31, 2019 related to the sale of substantially all of our public charter school portfolio, consisting of 47 public charter school related assets. See Note 4 to the consolidated financial statements included in this Annual Report on Form 10-K for further information on these impairment charges.

(16) Gain on sale of real estate from discontinued operations for the year ended December 31, 2019 was due to the disposition of ten public charter schools pursuant to tenant purchase options and seven other public charter school properties sold during 2019.

Liquidity and Capital Resources

Cash and cash equivalents were $288.8 million at December 31, 2021. In addition, we had restricted cash of $1.1 million at December 31, 2021, which related primarily to escrow deposits required for property management agreements or held for potential acquisitions and redevelopments.

49

Mortgage Debt, Senior Notes, Unsecured Revolving Credit Facility and Unsecured Term Loan Facility

As of December 31, 2021, we had total debt outstanding of $2.8 billion of which 99% was unsecured.

At December 31, 2021, we had outstanding $2.5 billion in aggregate principal amount of unsecured senior notes (excluding the private placement notes discussed below) ranging in interest rates from 3.60% to 4.95%. The notes contain various covenants, including: (i) a limitation on incurrence of any debt that would cause the ratio of our debt to adjusted total assets to exceed 60%; (ii) a limitation on incurrence of any secured debt that would cause the ratio of secured debt to adjusted total assets to exceed 40%; (iii) a limitation on incurrence of any debt that would cause our debt service coverage ratio to be less than 1.5 times; and (iv) the maintenance at all times of our total unencumbered assets such that they are not less than 150% of our outstanding unsecured debt.

On October 27, 2021, we issued $400.0 million in aggregate principal amount of senior notes due November 15, 2031 pursuant to an underwritten public offering. The notes bear interest at an annual rate of 3.60%. Interest is payable on May 15 and November 15 of each year beginning on May 15, 2022 until the stated maturity date. The notes were issued at 99.174% of their face value and are unsecured. Net proceeds from the note offering were used for the redemption of our senior notes due in 2023 discussed below and for general business purposes, including the acquisition of experiential properties consistent with our current strategy.

On November 12, 2021, we redeemed all of our $275.0 million principal amount of 5.25% senior notes due in 2023. We used a portion of the proceeds from the senior note offering discussed above to fund this redemption plus the make-whole premium payment of $19.6 million. The premiums paid and the deferred financing costs non-cash write off, totaling $20.4 million, were recognized as costs associated with loan refinancing or payoff.

In light of the financial and operational impacts of the COVID-19 pandemic on us, our tenants and borrowers, during the year ended December 31, 2020, we amended our Second Consolidated Credit Agreement, which governed our unsecured revolving credit facility and our unsecured term loan facility. The amendments modified certain provisions and waived our obligation to comply with certain covenants under this debt agreement during the Covenant Relief Period. Additionally, during the year ended December 31, 2020, we further amended our Note Purchase Agreement, which governs our private placement notes. The amendments modified certain provisions and waived our obligation to comply with certain covenants under this debt agreement during the Covenant Relief Period. We had the right under certain circumstances to terminate the Covenant Relief Period earlier.

Due to improved financial performance, on July 12, 2021, we provided notice of our election to terminate the Covenant Relief Period early. Our election to terminate the Covenant Relief Period early meant that, effective July 13, 2021, the interest rates on the debt governed by these agreements returned to the previous levels defined in the agreements. By terminating the Covenant Relief Period, we were also released from certain restrictions under these agreements, including restrictions on investments, capital expenditures, incurrences of indebtedness and payment of dividends.

On September 13, 2021, we paid off our $400.0 million unsecured term loan facility, and $1.5 million of deferred financing costs (net of accumulated amortization) were written off during the year ended December 31, 2021 and are included in costs associated with loan refinancing. In connection with the pay off, we terminated the related interest rate swap agreements on our term loan facility for a cash settlement of $3.2 million.

At December 31, 2021, we had no outstanding balance under our $1.0 billion unsecured revolving credit facility. Effective July 13, 2021, after we terminated the Covenant Relief Period, the interest rate, based on our unsecured debt ratings, returned to LIBOR plus 1.20% (with a LIBOR floor of zero) and the facility fee on the revolving credit facility was reduced to 0.25%.

On October 6, 2021, we entered into a Third Amended, Restated and Consolidated Credit Agreement ("Third Consolidated Credit Agreement"), governing a new amended and restated senior unsecured revolving credit facility. The new facility, which will mature on October 6, 2025, replaced our then existing $1.0 billion senior unsecured revolving credit facility and $400.0 million senior unsecured term loan facility under the Second Consolidated Credit Agreement. The new facility provides for an initial maximum principal amount of borrowing availability of

50

$1.0 billion with an “accordion” feature under which we may increase the total maximum principal amount available by $1.0 billion, to a total of $2.0 billion, subject to lender consent. The new facility has the same pricing terms and financial covenants as the prior facility (with improved valuation of certain asset types), as well as customary covenants and events of default. We have two options to extend the maturity date of the new credit facility by an additional six months each (for a total of 12 months), subject to paying additional fees and the absence of any default.

At December 31, 2021, we had outstanding $316.2 million of senior unsecured notes that were issued in a private placement transaction. The private placement notes were issued in two tranches with $148.0 million due August 22, 2024, and $192.0 million due August 22, 2026. At December 31, 2021, the interest rates for the private placement notes were 4.35% and 4.56% for the Series A notes due 2024 and the Series B notes due 2026, respectively. During the year ended December 31, 2021, we used a portion of our cash proceeds from property sales to reduce the principal of our private placement notes by $23.8 million in accordance with the above amendments to the Note Purchase Agreement.

Subsequent to December 31, 2021, we amended the Note Purchase Agreement to, among other things: (i) amend certain financial and other covenants and provisions in the Existing Note Purchase Agreement to conform generally to the changes beneficial to us in the corresponding covenants and provisions contained in the Third Consolidated Credit Agreement, and (ii) amend certain financial and other covenants and provisions in the existing note purchase agreement to reflect the prior termination of the Covenant Relief Period and removal of related provisions.

During the year ended December 31, 2021, we received an investment grade rating from S&P Global Ratings on our unsecured debt, adding to our current investment grade rating from Moody's Investors Services. Additionally, during October of 2021, Moody's revised its outlook on our investment grade rating on our unsecured debt from negative to stable. As discussed above, we previously caused certain of our key subsidiaries to guarantee our obligations under our existing bank credit facility, private placement notes and senior unsecured bonds due to a decrease in our credit ratings resulting from the impact of the COVID-19 pandemic. As a result of us obtaining an investment grade rating on our long-term unsecured debt from both S&P and Moody's, our subsidiary guarantors were released from their guarantees under these debt agreements in accordance with the terms of such agreements.

Our unsecured credit facilities and the private placement notes contain financial covenants or restrictions that limit our levels of consolidated debt, secured debt, investments outside certain categories, stock repurchases and dividend distributions and require us to maintain a minimum consolidated tangible net worth and meet certain coverage levels for fixed charges and debt service. 

Additionally, the debt instruments described above contain cross-default provisions if we default under other indebtedness exceeding certain amounts. Those cross-default thresholds vary from $50.0 million to $75.0 million, depending upon the debt instrument. We were in compliance with all financial and other covenants under our debt instruments at December 31, 2021.

Our principal investing activities are acquiring, developing and financing experiential and education properties. These investing activities have generally been financed with senior unsecured notes, as well as the proceeds from equity offerings. Our unsecured revolving credit facility is also used to finance the acquisition or development of properties, and to provide mortgage financing. We have and expect to continue to issue debt securities in public or private offerings. We have and may in the future assume mortgage debt in connection with property acquisitions or incur new mortgage debt on existing properties. We may also issue equity securities in connection with acquisitions. Continued growth of our real estate investments and mortgage financing portfolios will depend in part on our continued ability to access funds through additional borrowings and securities offerings and, to a lesser extent, our ability to assume debt in connection with property acquisitions. We may also fund investments with the proceeds from asset dispositions.

51

Liquidity Requirements

Short-term liquidity requirements consist primarily of normal recurring corporate operating expenses, debt service requirements, distributions to shareholders. We have historically met these requirements primarily through cash provided by operating activities. The table below summarizes our cash flows (dollars in thousands):

[[GREPCENT_TABLE]]
[["","","Year Ended December 31,"],["","","2021","","2020"],["Net cash provided by operating activities","","$","306,925","","","$","65,273"],["Net cash provided by investing activities","","1,862","","","133,986"],["Net cash (used) provided by financing activities","","(1,046,678)","","","297,169"]]
[[/GREPCENT_TABLE]]

As discussed above, we have agreed to rent and mortgage payment deferral arrangements with most of our customers as a result of the COVID-19 pandemic. Under these deferral arrangements, our customers are required to resume rent and mortgage payments at negotiated times, and begin repaying deferred amounts under negotiated schedules. In addition, the continuing impact of the COVID-19 pandemic may result in further extensions or adjustments for our customers, which we cannot predict at this time.

Liquidity and material cash requirements at December 31, 2021 consisted primarily of maturities of debt. Contractual obligations as of December 31, 2021 are as follows (in thousands):

[[GREPCENT_TABLE]]
[["","Year ended December 31,"],["Contractual Obligations","2022","","2023","","2024","","2025","","2026","","Thereafter","","Total"],["Long Term Debt Obligations","$","\u2014","","","$","\u2014","","","$","136,637","","","$","300,000","","","$","629,597","","","$","1,774,995","","","$","2,841,229"],["Interest on Long Term Debt Obligations","122,556","","","122,556","","","120,443","","","106,488","","","99,310","","","160,595","","","731,948"],["Operating Lease Obligation - Corporate Office","967","","","967","","","967","","","967","","","724","","","\u2014","","","4,592"],["Operating Ground Lease Obligations (1)","24,753","","","24,440","","","23,939","","","24,058","","","22,232","","","202,135","","","321,557"],["Total","$","148,276","","","$","147,963","","","$","281,986","","","$","431,513","","","$","751,863","","","$","2,137,725","","","$","3,899,326"]]
[[/GREPCENT_TABLE]]

(1) Our tenants, who are generally sub-tenants under the ground leases, are responsible for paying the rent under these ground leases. As of December 31, 2021, rental revenue from several of our tenants, who are also sub-tenants under the ground leases, are being recognized on a cash basis. In most cases, the ground lease sub-tenants have continued to pay the rent under these ground leases. In addition, two of these properties do not currently have sub-tenants. In the event the tenant fails to pay the ground lease rent or the property is vacant, we would be primarily responsible for the payment, assuming we do not sell or re-tenant the property. The above amounts exclude contingent rent due under leases where the ground lease payment, or a portion thereof, is based on the level of the tenant's sales.

Commitments

As of December 31, 2021, we had 15 development projects with commitments to fund an aggregate of approximately $88.8 million, of which approximately $36.0 million is expected to be funded in 2022. Development costs are advanced by us in periodic draws. If we determine that construction is not being completed in accordance with the terms of the development agreement, we can discontinue funding construction draws. We have agreed to lease the properties to the operators at pre-determined rates upon completion of construction.

We have certain commitments related to our mortgage notes and notes receivable investments that we may be required to fund in the future. We are 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 December 31, 2021, we had two mortgage notes with commitments totaling approximately $11.8 million, of which approximately $6.4 million is expected to be funded in 2022. If commitments are funded in the future, interest will be charged at rates consistent with the existing investments.

52

In connection with construction of our development projects and related infrastructure, certain public agencies require posting of surety bonds to guarantee that our obligations are satisfied. These bonds expire upon the completion of the improvements or infrastructure. As of December 31, 2021, we had four surety bonds outstanding totaling $33.3 million.

Liquidity Analysis

We currently anticipate that our cash on hand, cash from operations, funds available under our unsecured revolving credit facility and proceeds from asset dispositions will provide adequate liquidity to meet our financial commitments, including to fund our operations, make recurring debt service payments, and allow distributions to our shareholders and avoid corporate level federal income or excise tax in accordance with REIT Internal Revenue Code requirements.

We have no scheduled debt payments due until 2024. We currently believe that we will be able to repay, extend, refinance or otherwise settle our debt maturities as the debt comes due and that we will be able to fund our remaining commitments, as necessary. However, there can be no assurance that additional financing or capital will be available, or that terms will be acceptable or advantageous to us, particularly in light of the continuing economic uncertainty caused by the COVID-19 pandemic.

Our primary use of cash after paying operating expenses, debt service, distributions to shareholders, funding share repurchases and funding existing commitments is in growing our investment portfolio through the acquisition, development and financing of additional properties. We expect to finance these investments with borrowings under our unsecured revolving credit facility as well as debt and equity financing alternatives or proceeds from asset dispositions. The availability and terms of any such financing or sales will depend upon market and other conditions. If we borrow the maximum amount available under our unsecured revolving credit facility, there can be no assurance that we will be able to obtain additional or substitute investment financing. We may also assume mortgage debt in connection with property acquisitions.

Capital Structure

We believe that our shareholders are best served by a conservative capital structure. Therefore, we seek to maintain a conservative debt level on our balance sheet as measured primarily by our net debt to adjusted EBITDAre ratio (see "Non-GAAP Financial Measures" for definitions). We also seek to maintain conservative interest, fixed charge, debt service coverage and net debt to gross asset ratios. Our net debt to adjusted EBITDAre ratio was 5.2x and our net debt to gross assets ratio was 38% as of December 31, 2021 (see "Non-GAAP Financial Measures" for calculation).

Non-GAAP Financial Measures

Funds From Operations (FFO), Funds From Operations As Adjusted (FFOAA) and Adjusted Funds from Operations (AFFO)

The National Association of Real Estate Investment Trusts (“NAREIT”) developed FFO as a relative non-GAAP financial measure of performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. Pursuant to the definition of FFO by the Board of Governors of NAREIT, we calculate FFO as net income (loss) available to common shareholders, computed in accordance with GAAP, excluding gains and losses from disposition of real estate and impairment losses on real estate, plus real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships, joint ventures and other affiliates. Adjustments for unconsolidated partnerships, joint ventures and other affiliates are calculated to reflect FFO on the same basis. We have calculated FFO for all periods presented in accordance with this definition.

In addition to FFO, we present FFOAA and AFFO. FFOAA is presented by adding to FFO costs associated with loan refinancing or payoff, transaction costs, severance expense, preferred share redemption costs, impairment of operating lease right-of-use assets and credit loss (benefit) expense and subtracting gain on insurance recovery and deferred income tax (benefit) expense. AFFO is presented by adding to FFOAA non-real estate depreciation and

53

amortization, deferred financing fees amortization, share-based compensation expense to management and Trustees and amortization of above and below market leases, net and tenant allowances; and subtracting maintenance capital expenditures (including second generation tenant improvements and leasing commissions), straight-lined rental revenue (removing the impact of straight-line ground sublease expense), and the non-cash portion of mortgage and other financing income.

FFO, FFOAA and AFFO are widely used measures of the operating performance of real estate companies and are provided here as supplemental measures to GAAP net income (loss) available to common shareholders and earnings per share, and management provides FFO, FFOAA and AFFO herein because it believes this information is useful to investors in this regard. FFO, FFOAA and AFFO are non-GAAP financial measures. FFO, FFOAA and AFFO do not represent cash flows from operations as defined by GAAP and are not indicative that cash flows are adequate to fund all cash needs and are not to be considered alternatives to net income or any other GAAP measure as a measurement of the results of our operations or our cash flows or liquidity as defined by GAAP. It should also be noted that not all REITs calculate FFO, FFOAA and AFFO the same way so comparisons with other REITs may not be meaningful.

The following table summarizes our FFO, FFOAA and AFFO including per share amounts for FFO and FFOAA, for the years ended December 31, 2021, 2020 and 2019 and reconciles such measures to net income (loss) available to common shareholders, the most directly comparable GAAP measure (unaudited, in thousands, except per share information):

[[GREPCENT_TABLE]]
[["","Year ended December 31,"],["","2021","","2020","","2019"],["FFO:"],["Net income (loss) available to common shareholders of EPR Properties","$","74,472","","","$","(155,864)","","","$","178,107"],["Gain on sale of real estate","(17,881)","","","(50,119)","","","(36,053)"],["Impairment of real estate investments, net (1)","2,711","","","70,648","","","23,639"],["Real estate depreciation and amortization","162,951","","","169,253","","","170,717"],["Allocated share of joint venture depreciation","3,340","","","1,491","","","2,213"],["Impairment charges on joint ventures","\u2014","","","3,247","","","\u2014"],["FFO available to common shareholders of EPR Properties","$","225,593","","","$","38,656","","","$","338,623"],["FFO available to common shareholders of EPR Properties","$","225,593","","","$","38,656","","","$","338,623"],["Add: Preferred dividends for Series C preferred shares","\u2014","","","\u2014","","","7,754"],["Add: Preferred dividends for Series E preferred shares","\u2014","","","\u2014","","","7,756"],["Diluted FFO available to common shareholders of EPR Properties","$","225,593","","","$","38,656","","","$","354,133"],["FFOAA:"],["FFO available to common shareholders of EPR Properties","$","225,593","","","$","38,656","","","$","338,623"],["Costs associated with loan refinancing or payoff","25,451","","","1,632","","","38,450"],["Transaction costs","3,402","","","5,436","","","23,789"],["Severance expense","\u2014","","","2,868","","","2,364"],["Termination fee included in gain on sale","\u2014","","","\u2014","","","24,075"],["Gain on insurance recovery (included in other income)","(1,181)","","","(809)","","","\u2014"],["Impairment of operating lease right-of-use assets (1)","\u2014","","","15,009","","","\u2014"],["Credit loss (benefit) expense","(21,972)","","","30,695","","","\u2014"],["Deferred income tax expense (benefit)","\u2014","","","15,246","","","(4,115)"],["FFOAA available to common shareholders of EPR Properties","$","231,293","","","$","108,733","","","$","423,186"],["FFOAA available to common shareholders of EPR Properties","$","231,293","","","$","108,733","","","$","423,186"],["Add: Preferred dividends for Series C preferred shares","\u2014","","","\u2014","","","7,754"],["Add: Preferred dividends for Series E preferred shares","\u2014","","","\u2014","","","7,756"],["Diluted FFOAA available to common shareholders of EPR Properties","$","231,293","","","$","108,733","","","$","438,696"]]
[[/GREPCENT_TABLE]]

54

[[GREPCENT_TABLE]]
[["AFFO:"],["FFOAA available to common shareholders of EPR Properties","$","231,293","","","$","108,733","","","$","423,186"],["Non-real estate depreciation and amortization","819","","","1,080","","","1,045"],["Deferred financing fees amortization","7,666","","","6,606","","","6,192"],["Share-based compensation expense to management and trustees","14,903","","","13,819","","","13,180"],["Amortization of above/below-market leases, net and tenant allowances","(385)","","","(480)","","","(343)"],["Maintenance capital expenditures (2)","(4,631)","","","(11,377)","","","(5,453)"],["Straight-lined rental revenue","(5,664)","","","24,550","","","(13,552)"],["Straight-lined ground sublease expense","382","","","749","","","882"],["Non-cash portion of mortgage and other financing income","(446)","","","(250)","","","(2,411)"],["AFFO available to common shareholders of EPR Properties","$","243,937","","","$","143,430","","","$","422,726"],["FFO per common share:"],["Basic","$","3.02","","","$","0.51","","","$","4.41"],["Diluted","3.02","","","0.51","","","4.39"],["FFOAA per common share:"],["Basic","$","3.09","","","$","1.43","","","$","5.51"],["Diluted","3.09","","","1.43","","","5.44"],["Shares used for computation (in thousands):"],["Basic","74,755","","","75,994","","","76,746"],["Diluted","74,756","","","75,994","","","76,782"],["Weighted average shares outstanding-diluted EPS","74,756","","","75,994","","","76,782"],["Effect of dilutive Series C preferred shares","\u2014","","","\u2014","","","2,164"],["Effect of dilutive Series E preferred shares","\u2014","","","\u2014","","","1,631"],["Adjusted weighted average shares outstanding - diluted Series C and Series E","74,756","","","75,994","","","80,577"],["Other financial information:"],["Dividends per common share","$","1.500","","","$","1.515","","","$","4.500"]]
[[/GREPCENT_TABLE]]

Amounts above include the impact of discontinued operations, which are separately classified in the consolidated statements of income (loss) and comprehensive income (loss) included in this Annual Report on Form 10-K. See Note 16 to the consolidated financial statements in this Annual Report on Form 10-K for additional information related to discontinued operations.

(1) Impairment charges recognized during the year ended December 31, 2020 totaled $85.7 million, which was comprised of $70.7 million of impairments of real estate investments and $15.0 million of impairments of operating lease right-of-use assets.

(2) Includes maintenance capital expenditures and certain second-generation tenant improvements and leasing commissions.

The effect of the conversion of our convertible preferred shares is calculated using the if-converted method and the conversion which results in the most dilution is included in the computation of per share amounts. The additional common shares that would result from the conversion of the 5.75% Series C cumulative convertible preferred shares and the 9.00% Series E cumulative convertible preferred shares for each of the years ended December 31, 2021 and 2020, and the corresponding add-back of the preferred dividends declared on those shares are not included in the calculation of diluted FFO and FFOAA per share because the effect is anti-dilutive.

The conversion of the 5.75% Series C cumulative convertible preferred shares and the 9.00% Series E cumulative convertible preferred shares would be dilutive to FFO and FFOAA per share for year ended December 31, 2019. Therefore, the additional common shares that would result from the conversion and the corresponding add-back of the preferred dividends declared on those shares are included in the calculation of diluted FFO and FFOAA per share for that period.

55

Net Debt

Net Debt represents debt (reported in accordance with GAAP) adjusted to exclude deferred financing costs, net and reduced for cash and cash equivalents. By excluding deferred financing costs, net and reducing debt for cash and cash equivalents on hand, the result provides an estimate of the contractual amount of borrowed capital to be repaid, net of cash available to repay it. We believe this calculation constitutes a beneficial supplemental non-GAAP financial disclosure to investors in understanding our financial condition. Our method of calculating Net Debt may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.

Gross Assets

Gross Assets represents total assets (reported in accordance with GAAP) adjusted to exclude accumulated depreciation and reduced for cash and cash equivalents. By excluding accumulated depreciation and reducing cash and cash equivalents, the result provides an estimate of the investment made by us. We believe that investors commonly use versions of this calculation in a similar manner. Our method of calculating Gross Assets may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.

Net Debt to Gross Assets Ratio

Net Debt to Gross Assets Ratio is a supplemental measure derived from non-GAAP financial measures that we use to evaluate capital structure and the magnitude of debt to gross assets. We believe that investors commonly use versions of this ratio in a similar manner. Our method of calculating Net Debt to Gross Assets may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.

EBITDAre

NAREIT developed EBITDAre as a relative non-GAAP financial measure of REITs, independent of a company's capital structure, to provide a uniform basis to measure the enterprise value of a company. Pursuant to the definition of EBITDAre by the Board of Governors of NAREIT, we calculate EBITDAre as net income (loss), computed in accordance with GAAP, excluding interest expense (net), income tax (benefit) expense, depreciation and amortization, gains and losses from disposition of real estate, impairment losses on real estate, costs associated with loan refinancing or payoff and adjustments for unconsolidated partnerships, joint ventures and other affiliates.

Management provides EBITDAre herein because it believes this information is useful to investors as a supplemental performance measure as it can help facilitate comparisons of operating performance between periods and with other REITs. Our method of calculating EBITDAre may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. EBITDAre is not a measure of performance under GAAP, does not represent cash generated from operations as defined by GAAP and is not indicative of cash available to fund all cash needs, including distributions. This measure should not be considered an alternative to net income or any other GAAP measure as a measurement of the results of our operations or cash flows or liquidity as defined by GAAP.

Adjusted EBITDAre

Management uses Adjusted EBITDAre in its analysis of the performance of the business and operations of the Company. Management believes Adjusted EBITDAre is useful to investors because it excludes various items that management believes are not indicative of operating performance, and that it is an informative measure to use in computing various financial ratios to evaluate the Company. We define Adjusted EBITDAre as EBITDAre (defined above) for the quarter excluding gain on insurance recovery, severance expense, credit loss (benefit) expense, transaction costs, impairment losses on operating lease right-of-use assets and prepayment fees. For the three months ended December 31, 2020, Adjusted EBITDAre was further adjusted to add back prior period receivable write-offs related to certain theatre tenants placed on cash basis or receiving abatements during the quarter.

Our method of calculating Adjusted EBITDAre may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. Adjusted EBITDAre is not a measure of performance under GAAP, does not represent cash generated from operations as defined by GAAP and is not indicative of cash available to fund all cash needs, including distributions. This measure should not be considered as an alternative to net income or any other GAAP measure as a measurement of the results of our operations or cash flows or liquidity as defined by GAAP.

56

Net Debt to Adjusted EBITDAre Ratio

Net Debt to Adjusted EBITDAre Ratio is a supplemental measure derived from non-GAAP financial measures that we use to evaluate our capital structure and the magnitude of our debt against our operating performance. We believe that investors commonly use versions of this ratio in a similar manner. In addition, financial institutions use versions of this ratio in connection with debt agreements to set pricing and covenant limitations. Our method of calculating Net Debt to Adjusted EBITDAre may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.

Reconciliations of debt, total assets and net income (loss) (all reported in accordance with GAAP) to Net Debt, Gross Assets, Net Debt to Gross Assets Ratio, EBITDAre, Adjusted EBITDAre and Net Debt to Adjusted EBITDAre ratio (each of which is a non-GAAP financial measure), as applicable, are included in the following tables (unaudited, in thousands):

[[GREPCENT_TABLE]]
[["","December 31,"],["","2021","","2020"],["Net Debt:"],["Debt","$","2,804,365","","","$","3,694,443"],["Deferred financing costs, net","36,864","","","35,552"],["Cash and cash equivalents","(288,822)","","","(1,025,577)"],["Net Debt","$","2,552,407","","","$","2,704,418"],["Gross Assets:"],["Total Assets","$","5,801,150","","","$","6,704,185"],["Accumulated depreciation","1,167,734","","","1,062,087"],["Cash and cash equivalents","(288,822)","","","(1,025,577)"],["Gross Assets","$","6,680,062","","","$","6,740,695"],["Net Debt to Gross Assets Ratio","38","%","","40","%"],["","Three Months Ended December 31,"],["","2021","","2020"],["EBITDAre and Adjusted EBITDAre:"],["Net income (loss)","$","44,557","","","$","(19,977)"],["Interest expense, net","34,005","","","42,838"],["Income tax expense","397","","","402"],["Depreciation and amortization","40,294","","","42,014"],["Gain on sale of real estate","(16,382)","","","(49,877)"],["Impairment of real estate investments, net","\u2014","","","22,832"],["Costs associated with loan refinancing or payoff","20,469","","","812"],["Allocated share of joint venture depreciation","1,561","","","361"],["Allocated share of joint venture interest expense","1,145","","","872"],["EBITDAre (for the quarter)","$","126,046","","","$","40,277"],["Gain on insurance recovery (1)","(1,151)","","","(809)"],["Severance expense","\u2014","","","2,868"],["Transaction costs","60","","","814"],["Credit loss (benefit) expense","(2,295)","","","20,312"],["Accounts receivable write-offs from prior periods (2)","\u2014","","","4,301"],["Straight-line receivable write-offs from prior periods (2)","\u2014","","","870"],["Adjusted EBITDAre (for the quarter)","$","122,660","","","$","68,633"],["Adjusted EBITDAre (3)","$","490,640","","","Footnote 4"],["Net Debt to Adjusted EBITDAre Ratio","5.2","","","Footnote 4"]]
[[/GREPCENT_TABLE]]

57

[[GREPCENT_TABLE]]
[["(1) Included in other income in the consolidated statements of income (loss) and comprehensive income (loss) for the quarter. Other income includes the following:"],["","Three Months Ended December 31,"],["","2021","","2020"],["Income from settlement of foreign currency swap contracts","$","41","","","$","110"],["Gain on insurance recovery","1,151","","","809"],["Operating income from operated properties","7,815","","","45"],["Miscellaneous income","7","","","4"],["Other income","$","9,014","","","$","968"],["(2) Included in rental revenue in the consolidated statements of income (loss) and comprehensive income (loss) for the quarter. Rental revenue includes the following:"],["","Three Months Ended December 31,"],["","2021","","2020"],["Minimum rent","$","123,463","","","$","79,342"],["Accounts receivable write-offs from prior periods","\u2014","","","(4,301)"],["Tenant reimbursements","4,712","","","4,831"],["Percentage rent","6,851","","","3,040"],["Straight-line rental revenue","1,974","","","1,768"],["Straight-line receivable write-offs from prior periods","\u2014","","","(870)"],["Other rental revenue","345","","","201"],["Rental revenue","$","137,345","","","$","84,011"],["(3) Adjusted EBITDAre for the quarter is multiplied by four to calculate an annual amount."],["(4) Not presented as ratio is not meaningful given the disruption caused by COVID-19 and the associated accounting for tenant rent deferrals and other lease modifications."]]
[[/GREPCENT_TABLE]]

58

Total Investments

Total investments is a non-GAAP financial measure defined as the sum of the carrying values of real estate investments (before accumulated depreciation), land held for development, property under development, mortgage notes receivable (including related accrued interest receivable), investment in joint ventures, intangible assets, gross (before accumulated amortization and included in other assets) and notes receivable and related accrued interest receivable, net (included in other assets). Total investments is a useful measure for management and investors as it illustrates across which asset categories the Company's funds have been invested. Our method of calculating total investments may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. A reconciliation of total investments to total assets (computed in accordance with GAAP) is included in the following table (unaudited, in thousands):

[[GREPCENT_TABLE]]
[["","December 31, 2021","","December 31, 2020"],["Total Investments:"],["Real estate investments, net of accumulated depreciation","$","4,713,091","","","$","4,851,302"],["Add back accumulated depreciation on real estate investments","1,167,734","","","1,062,087"],["Land held for development","20,168","","","23,225"],["Property under development","42,362","","","57,630"],["Mortgage notes and related accrued interest receivable","370,159","","","365,628"],["Investment in joint ventures","36,670","","","28,208"],["Intangible assets, gross (1)","57,962","","","57,962"],["Notes receivable and related accrued interest receivable, net (1)","7,254","","","7,300"],["Total investments","$","6,415,400","","","$","6,453,342"],["Total investments","$","6,415,400","","","$","6,453,342"],["Operating lease right-of-use assets","180,808","","","163,766"],["Cash and cash equivalents","288,822","","","1,025,577"],["Restricted cash","1,079","","","2,433"],["Accounts receivable","78,073","","","116,193"],["Less: accumulated depreciation on real estate investments","(1,167,734)","","","(1,062,087)"],["Less: accumulated amortization on intangible assets (1)","(20,163)","","","(16,330)"],["Prepaid expenses and other current assets (1)","24,865","","","21,291"],["Total assets","$","5,801,150","","","$","6,704,185"],["(1) Included in \"Other assets\" in the accompanying consolidated balance sheets. Other assets include the following:"],["","December 31, 2021","","December 31, 2020"],["Intangible assets, gross","$","57,962","","","$","57,962"],["Less: accumulated amortization on intangible assets","(20,163)","","","(16,330)"],["Notes receivable and related accrued interest receivable, net","7,254","","","7,300"],["Prepaid expenses and other current assets","24,865","","","21,291"],["Total other assets","$","69,918","","","$","70,223"]]
[[/GREPCENT_TABLE]]

Impact of Recently Issued Accounting Standards

See Note 2 to the consolidated financial statements included in this Annual Report on Form 10-K for additional information on the impact of recently issued accounting standards on our business.