EPR Properties (NYSE:EPR.PRF) Q3 2016 Earnings Conference Call - Preliminary Transcript

Nov 03, 2016 • 05:00 pm ET


EPR Properties (NYSE:EPR.PRF) Q3 2016 Earnings Conference Call - Preliminary Transcript


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Good day, ladies and gentlemen, and welcome to the EPR Properties Q3 2016 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, this call is being recorded.

I would like to introduce your host for today's conference, Brian Moriarty, Vice President of Communications. Sir, you may begin.

Brian Moriarty

Thank you, operator, and thanks to all that are joining us today. As always, I'll start the call by informing you that this call may include forward-looking statements as defined in the Private Securities Litigation Act of 1996, identified by such words as will be, intend, continue, believe, may, expect, hope, anticipate, or other comparable terms.

In particular, we will be discussing our announced agreement with CNL Lifestyle Properties and our expectations with respect to that transaction. The company's actual financial condition and results of operations may vary materially from those contemplated by such forward-looking statements, and you should consider the cautionary statements we have provided in the materials in this presentation.

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 the company President and CEO, Greg Silvers.

Greg Silvers

Thank you, Brian, and good morning 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; and CIO, Jerry Earnest.

I will start by stating that today's call will run longer than our traditional earnings call, as we will be providing an overview of our just-announced CNL transaction during the call. This is obviously a significant transaction for the company, and it's important for us to communicate the key elements of the transaction in some detail. With that, I'll get started on today's headlines.

Today's first headline, strong quarter supported by ongoing solid fundamentals. We are pleased to report another quarter of solid top-line results as is demonstrated by our quarterly revenue growth of 16%, as compared to the same quarter previous year.

This strength is also translated to our earnings, as well, as we delivered a 5% increase in our adjusted FFO per share versus the prior period. Additionally, we saw meaningful investment spending across each of our primary investment segments.

Next, investing in large high-quality portfolio of recreation assets which complements our expertise. As reported in our press release, we have entered into a definitive purchase and sell agreement with CNL Lifestyle Properties and funds affiliated with Och-Ziff Real Estate for an investment of approximately $700 million in the recreation segment. We are extremely pleased to announce this transaction, which is the culmination of a lengthy and disciplined process of underwriting, due diligence, and negotiations.

The agreement provides for the company's investment in a portfolio of high-quality ski and attractions assets and