EPR Properties (NYSE:EPR.PRF) Q2 2016 Earnings Conference Call - Preliminary Transcript

Aug 03, 2016 • 05:00 pm ET

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EPR Properties (NYSE:EPR.PRF) Q2 2016 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Second Quarter 2016 EPR Properties Earnings Conference Call. At this time all participants are in a listen only-mode. Later we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, today's conference may be recorded.

I would like to introduce your host for today's conference, Mr. Brian Moriarty, VP of Corporate Communications. Sir, please go ahead.

Executive
Brian Moriarty

Okay. Thank you, operator, and thanks to all joining us today. As always, I'll start the call by informing you that this call may include forward-looking statements as defined by the Private Securities Litigation Act of 1995. Identified by such words as will be, intend, continue, believe, may, expect, hope, anticipate or other comparable terms. The Company's actual financial condition and results of operations may vary materially from those contemplated by such forward-looking statements.

Discussion of these factors that could cause results to differ materially from these forward-looking statements are contained in the Company's SEC filings, including the Company's reports Form 10-K and 10-Q. Now, I'll turn the call over to Company President and CEO, Greg Silvers.

Executive
Greg Silvers

Thank you, Brian, and good afternoon to everyone. I'd like to remind everyone that Slides are available to follow along via our website at www.eprkc.com. With me on the call today are the Company's CFO, Mark Peterson.

Executive
Mark Peterson

Good afternoon.

Executive
Greg Silvers

And CIO, Jerry Earnest.

Executive
Jerry Earnest

Good afternoon.

Executive
Greg Silvers

I'll start with our quarterly headlines and then pass the call to Jerry to discuss the business in greater detail. Today's first headline, revenue and adjusted FFO per share continued strong momentum. As compared to the same quarter previous year, quarterly revenue grew 17% and adjusted FFO per share grew by 8%. We're delighted to have delivered this consistent story of quarterly growth. Next, healthy entertainment investment spending anchored by theatre portfolio transaction. While theatre build-to-suits provide our more consistent stream of growth due to our strong relationships, we also opportunistically pursue portfolio deals should they meet our desired characteristics.

The $100 million theatre portfolio purchased in the second quarter is very much in line with our targeted characteristics and we're pleased with this immediately accretive transaction. Our third headline is Adelaar infrastructure bonds issued. As we announced in June the Sullivan County Infrastructure Local Development Corporation issued $110 million of Series 2016 Revenue Bonds which will fund construction costs for infrastructure incurred by EPR Properties in connection with its development at Adelaar. Jerry will have more on this key milestone for Adelaar.

Next, private placement transaction nets $340 million of senior unsecured notes as Mark will speak to further, this transaction expands our options for raising capital. It also demonstrates that our strategy of building a portfolio of durable, strong cash flowing assets is welcomed by insurance companies that focus on long term reliable investments. Our last headline is increasing adjusted FFO per share and investment spending guidance. We're excited to be able to again raise our guidance as we continue to demonstrate the strength of