• Total revenue was $175.7 million for the second quarter of 2019, compared to $202.9 million for the same quarter in 2018. Total revenue for the second quarter in 2018 included a $45.9 million prepayment fee relating to a recreation segment mortgage note.
• Net income available to common shareholders was $60.6 million, or $0.79 per diluted common share, for the second quarter of 2019 compared to $85.5 million, or $1.15 per diluted common share, for the same quarter in 2018.
• Funds From Operations (FFO) (a non-GAAP financial measure) for the second quarter of 2019 was $93.4 million, or $1.22 per diluted common share, compared to $139.0 million, or $1.84 per diluted common share, for the same quarter in 2018.
• FFO as adjusted (FFOAA) (a non-GAAP financial measure) for the second quarter of 2019 was $105.2 million, or $1.36 per diluted common share, compared to $141.8 million, or $1.87 per diluted common share, for the same quarter in 2018.

• Total revenue was $340.2 million for the six months ended June 30, 2019, compared to $357.8 million for the same period in 2018. Total revenue for the six months ended June 30, 2018 included a $45.9 million prepayment fee relating to a recreation segment mortgage note.
• Net income available to common shareholders was $119.9 million, or $1.59 per diluted common share, for the six months ended June 30, 2019, compared to $109.0 million, or $1.47 per diluted common share, for the same period in 2018.
• FFO (a non-GAAP financial measure) for the six months ended June 30, 2019 was $186.5 million, or $2.45 per diluted common share, compared to $200.1 million, or $2.67 per diluted common share, for the same period in 2018.
• FFOAA (a non-GAAP financial measure) for the six months ended June 30, 2019 was $207.8 million, or $2.72 per diluted common share, compared to $235.8 million, or $3.12 per diluted common share, for the same period in 2018.

"This was a very productive quarter for EPR. Not only is deal velocity increasing, but the credit profile of our asset base has significantly strengthened," commented Greg Silvers, President and CEO. "Furthermore, the market's support of our experiential strategy has allowed us to issue all the equity needed to fund our upsized investment spending guidance, while also de-leveraging our balance sheet. As a result, we believe we are well positioned to take advantage of increasing interest in experiential assets and the opportunities presented."

• The Entertainment segment included investments in 176 megaplex theatre properties, seven entertainment retail centers (which include seven additional megaplex theatre properties) and 12 other entertainment properties. The Company's portfolio of owned entertainment properties consisted of 14.7 million square feet and was 99% leased, including megaplex theatres that were 100% leased.
• The Recreation segment included investments in 12 ski areas, 23 attractions, 35 golf entertainment complexes and 13 other recreation properties. The Company's portfolio of owned recreation properties was 100% leased.
• The Education segment included investments in 51 public charter schools, 71 early education centers and 16 private schools. The Company's portfolio of owned education properties consisted of 4.3 million square feet and was 98% leased.
• The Other segment consisted primarily of the land under ground lease and land held for development related to the Resorts World Catskills project in Sullivan County, New York.

On July 22, 2019, two of the Company's ski customers announced that one of them, Vail Resorts Inc., would acquire the other, Peak Resorts Inc. The Company currently has ski investments in Vail's NorthStar California Resort and eight Peak properties located in four states. The Company expects to continue holding these investments with no structural changes. If the transaction had been consummated at June 30, 2019, Vail would have been one of the Company's top five customers by revenue during the second quarter.

The Company had a net debt to adjusted EBITDA ratio (a non-GAAP financial measure) of 5.8x at June 30, 2019. The repayment in full of the $189.7 million Schlitterbahn mortgage notes received after quarter-end, which was applied to reduce the outstanding amount on the Company's line of credit, reduced this ratio to within management's normal expected range. The Company had $6.9 million of unrestricted cash on hand and a $240.0 million outstanding balance under its $1.0 billion unsecured revolving credit facility at June 30, 2019.

The Company's updated 2019 guidance for net income per diluted share is $2.99 to $3.15. The Company is narrowing its guidance for 2019 FFO as adjusted per diluted share to a range of $5.32 to $5.48 from a range of $5.30 to $5.50 and increasing its 2019 investment spending guidance to a range of $700.0 million to $850.0 million from a range of $600.0 million to $800.0 million. The Company is confirming its 2019 expected disposition proceeds range of $300.0 million to $400.0 million.

FFO as adjusted guidance for 2019 is based on FFO per diluted share of $4.92 to $5.05 adjusted for estimated transaction costs, termination fees related to public charter schools, deferred income tax benefit and the impact of Series C and Series E dilution. FFO per diluted share is based on a net income per diluted share range of $2.99 to $3.15 less estimated gain on sale of real estate of a range of $0.30 to $0.33 and the impact of Series C and Series E dilution of $0.04, plus estimated real estate depreciation of $2.24 and allocated share of joint venture depreciation of $0.03 (in accordance with the NAREIT definition of FFO).

The Company's supplemental information package for the second quarter and six months ended June 30, 2019 is available on the Company's website at http://investors.eprkc.com/earnings-supplementals.

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 the three and six months ended June 30, 2019. Therefore, the additional 2.2 million common shares and 1.6 million 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 per share and diluted FFOAA per share for the three and six months ended June 30, 2019.

The conversion of the 5.75% Series C cumulative convertible preferred shares would be dilutive to FFO and FFOAA per share for the three and six months ended June 30, 2018. Therefore, the additional 2.1 million 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 per share and diluted FFOAA per share for the three and six months ended June 30, 2018.

The conversion of the 9.00% Series E cumulative convertible preferred shares would not be dilutive to FFO per share for the three and six months ended June 30, 2018. Therefore, the additional 1.6 million common shares that would result from the conversion and the corresponding add-back of the preferred dividends declared on those shares are not included in the calculation of diluted FFO per share for the three and six months ended June 30, 2018. The conversion of the 9.00% Series E cumulative convertible preferred shares would be dilutive to FFOAA per share for the three and six months ended June 30, 2018. Therefore, the additional 1.6 million 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 FFOAA per share for the three and six months ended June 30, 2018.

Net Debt to Adjusted EBITDA Ratio is a supplemental measure derived from non-GAAP financial measures the Company uses to evaluate its capital structure and the magnitude of its debt against its operating performance. The Company believes 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. The Company's method of calculating Net Debt to Adjusted EBITDA Ratio may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. Reconciliations of debt and net income (both reported in accordance with GAAP) to Net Debt, EBITDAre, Adjusted EBITDA, and Net Debt to Adjusted EBITDA Ratio (each of which is a non-GAAP financial measure) are included in the following tables (unaudited, in thousands):

EPR Properties is a specialty real estate investment trust (REIT) that invests in properties in select market segments which require unique industry knowledge, while offering the potential for stable and attractive returns. Our total investments exceed $7.3 billion and our primary investment segments are Entertainment, Recreation and Education. We adhere to rigorous underwriting and investing criteria centered on key industry and property level cash flow standards. We believe our focused niche approach provides a competitive advantage, and the potential for higher growth and better yields.

With the exception of historical information, certain statements contained or incorporated by reference herein may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), such as those pertaining to our acquisition or disposition of properties, our capital resources, future expenditures for development projects, expected dividend payments, and our results of operations and financial condition. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of actual events. There is no assurance the events or circumstances reflected in the forward-looking statements will occur. You can identify forward-looking statements by use of words such as "will be," "intend," "continue," "believe," "may," "expect," "hope," "anticipate," "goal," "forecast," "pipeline," "estimates," "offers," "plans," "would" or other similar expressions or other comparable terms or discussions of strategy, plans or intentions contained or incorporated by reference herein. While references to commitments for investment spending are based on present commitments and agreements of the Company, we cannot provide assurance that these transactions will be completed on satisfactory terms. In addition, references to our budgeted amounts and guidance are forward-looking statements. Forward-looking statements necessarily are dependent on assumptions, data or methods that may be incorrect or imprecise. These forward-looking statements represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Many of the factors that will determine these items are beyond our ability to control or predict. For further discussion of these factors see "Item 1A. Risk Factors" in our most recent Annual Report on Form 10-K and, to the extent applicable, our Quarterly Reports on Form 10-Q.

For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date hereof or the date of any document incorporated by reference herein. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Except as required by law, we do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances after the date hereof.