EX-99.3 4 ex993-eprx3312020suppl.htm SUPPLEMENTAL OPERATING AND FINANCIAL DATA
Exhibit 99.3

Supplemental Operating and Financial Data
First Quarter Ended March 31, 2020

TABLE OF CONTENTS
SECTION |  |  |  |  |  |  |  | PAGE
Company Profile | 4
Investor Information | 5
Selected Financial Information | 6
Selected Balance Sheet Information | 7
Selected Operating Data | 8
Funds From Operations and Funds From Operations as Adjusted | 9
Adjusted Funds From Operations | 10
Capital Structure | 11
Summary of Ratios | 16
Summary of Mortgage Notes Receivable | 17
Investment Spending and Disposition Summaries | 18
Property Under Development - Investment Spending Estimates | 19
Annualized Adjusted Revenue by Property Type | 20
Lease Expirations | 21
Top Ten Customers by Total Revenue | 22
Definitions-Non-GAAP Financial Measures | 23
Appendix-Reconciliation of Certain Non-GAAP Financial Measures | 26

Q1 2020 Supplemental | Page 2

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

W ith 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 the uncertain financial impact of COVID-19, our capital resources and liquidity, expected dividend payments, expected liquidity and performance of our customers, including AMC, future expenditures for development projects and our results of operations and financial condition. The estimates presented herein are based on the Company's current expectations and, given the current economic uncertainty, there can be no assurances that the Company will be able to continue paying dividends at expected levels, or at all, or continue to comply with applicable covenants under its debt agreements, which could materially impact actual performance. 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. 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 Quarterly Report 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.
NON-GAAP INFORMATION
This document contains certain non-GAAP measures. These non-GAAP measures, as calculated by the Company, are not necessarily comparable to similarly titled measures reported by other companies. Additionally, these non-GAAP measures are not measurements of financial performance or liquidity under GAAP and should not be considered alternatives to the Company's other financial information determined under GAAP. See pages 23 through 25 for definitions of certain non-GAAP financial measures used in this document and the reconciliations of certain non-GAAP measures on pages 9 and 10 and in the Appendix on pages 26 through 30.

Q1 2020 Supplemental | Page 3

COMPANY PROFILE

THE COMPANY |  | COMPANY STRATEGY
EPR Properties ("EPR" or the "Company") is a self-administered and self-managed real estate investment trust. EPR was formed in August 1997 as a Maryland real estate investment trust ("REIT"), and an initial public offering was completed on November 18, 1997. |  | EPR's primary business objective is to enhance shareholder value by achieving predictable growth in Funds from Operations As Adjusted ("FFOAA") and dividends per share.
Since that time, the Company has been a leading Experiential net lease REIT, specializing in select enduring experiential properties. We are focused on growing our Experiential portfolio with properties that offer a variety of enduring, congregate entertainment, recreation and leisure activities. Separately, our Education portfolio is a legacy investment that provides additional geographic and operator diversity. |  | Our strategic growth is focused on acquiring or developing experiential real estate venues which create value by facilitating out of home congregate entertainment, recreation and leisure experiences where consumers choose to spend their discretionary time and money. These are properties which make up the social infrastructure of society.
| This focus is consistent with our depth of knowledge across each of our property types, creating a competitive advantage that allows us to more quickly identify key market trends. We deliberately apply information and our ingenuity to target properties that represent logical extensions within each of our existing property types or potential future investments.
| As part of our strategic planning and portfolio management process we assess new opportunities against the following underwriting principles:

BUILDING THE PREMIER EXPERIENTIAL REAL ESTATE PORTFOLIO

Q1 2020 Supplemental | Page 4

INVESTOR INFORMATION
SENIOR MANAGEMENT
Greg Silvers |  | Mark Peterson
President and Chief Executive Officer |  | Executive Vice President and Chief Financial Officer
Craig Evans |  | Greg Zimmerman
Executive Vice President, General Counsel and Secretary |  | Executive Vice President and Chief Investment Officer
Tonya Mater |  | Mike Hirons
Vice President and Chief Accounting Officer |  | Senior Vice President - Asset Management

COMPANY INFORMATION
CORPORATE HEADQUARTERS |  | TRADING SYMBOLS
909 Walnut Street, Suite 200 |  | Common Stock:
Kansas City, MO 64106 |  | EPR
888-EPR-REIT |  | Preferred Stock:
www.eprkc.com |  | EPR-PrC
|  | EPR-PrE
STOCK EXCHANGE LISTING |  | EPR-PrG
New York Stock Exchange |  |

EQUITY RESEARCH COVERAGE
Bank of America Merrill Lynch | Jeffrey Spector/Joshua Dennerlein | 646-855-1363
Citi Global Markets | Michael Bilerman/Nick Joseph | 212-816-4471
Janney Montgomery Scott | Rob Stevenson | 646-840-3217
J.P. Morgan | Anthony Paolone/Nikita Bely | 212-622-6682
Kansas City Capital Associates | Jonathan Braatz | 816-932-8019
Keybanc Capital Markets | Jordan Sadler/Craig Mailman | 917-368-2280
Ladenburg Thalmann | John Massocca | 212-409-2056
Raymond James & Associates | Collin Mings | 727-567-2585
RBC Capital Markets | Michael Carroll | 440-715-2649
Stifel | Simon Yarmak | 443-224-1345
SunTrust Robinson Humphrey | Ki Bin Kim | 212-303-4124

EPR Properties is followed by the analysts identified above. Please note that any opinions, estimates, forecasts or recommendations regarding EPR Properties’ performance made by these analysts are theirs alone and do not represent opinions, estimates, forecasts or recommendations of EPR Properties or its management. EPR Properties does not by its reference above or distribution imply its endorsement of or concurrence with such information, conclusions or recommendations.

Q1 2020 Supplemental | Page 5

SELECTED FINANCIAL INFORMATION
(UNAUDITED, DOLLARS AND SHARES IN THOUSANDS)
| THREE MONTHS ENDED MARCH 31,
Operating Information: | 2020 |  | 2019
Revenue (1) | $ | 151,012 |  |  | $ | 150,527 |
Net income available to common shareholders of EPR Properties | 31,084 |  |  | 59,315 |
EBITDAre (2) | 115,130 |  |  | 131,496 |
Adjusted EBITDA (2) | 129,929 |  |  | 136,139 |
Interest expense, net (1) | 34,753 |  |  | 33,963 |
Capitalized interest | 262 |  |  | 3,137 |
Straight-lined rental revenue | (9,708 | ) |  | 2,414 |
Dividends declared on preferred shares | 6,034 |  |  | 6,034 |
Dividends declared on common shares | 88,996 |  |  | 84,343 |
General and administrative expense | 10,988 |  |  | 11,710 |
| MARCH 31,
Balance Sheet Information: | 2020 |  | 2019
Total assets | $ | 7,255,340 |  |  | $ | 6,431,231 |
Accumulated depreciation | 1,023,993 |  |  | 920,409 |
Cash and cash equivalents | 1,225,122 |  |  | 11,116 |
Total assets before accumulated depreciation less cash and cash equivalents (gross assets) | 7,054,211 |  |  | 7,340,524 |
Debt | 3,854,062 |  |  | 3,045,742 |
Deferred financing costs, net | 35,933 |  |  | 32,838 |
Net debt (2) | 2,664,873 |  |  | 3,067,464 |
Equity | 2,936,481 |  |  | 2,912,779 |
Common shares outstanding | 78,588 |  |  | 75,483 |
Total market capitalization (using EOP closing price) | 4,939,300 |  |  | 9,243,164 |
Net debt/gross assets | 38 | % |  | 42 | %
Net debt/Adjusted EBITDA (3) | 5.1 |  |  | 5.6 |
Adjusted net debt/Annualized adjusted EBITDA (2)(4)(5) | 4.9 |  |  | 5.4 |
(1) Excludes discontinued operations.
(2) See pages 23 through 25 for definitions. See calculation as applicable on page 29.
(3) Adjusted EBITDA is for the quarter multiplied times four. See pages 23 through 25 for definitions. See calculation on page 29.
(4) Adjusted net debt is net debt less 40% times property under development. See pages 23 through 25 for definitions.
(5) Annualized adjusted EBITDA is adjusted EBITDA for the quarter further adjusted for in-service and disposed projects, percentage rent and participating interest and other non-recurring items which is then multiplied times four. These calculations can be found on page 29 under the reconciliation of Adjusted EBITDA and Annualized Adjusted EBITDA. See pages 23 through 25 for definitions.

Q1 2020 Supplemental | Page 6

SELECTED BALANCE SHEET INFORMATION
(UNAUDITED, DOLLARS IN THOUSANDS)
ASSETS |  | 1ST QUARTER 2020 |  | 4TH QUARTER 2019 |  | 3ND QUARTER 2019 |  | 2ND QUARTER 2019 |  | 1ST QUARTER 2019 |  | 4TH QUARTER 2018
Real estate investments |  | $ | 6,208,685 |  |  | $ | 6,186,562 |  |  | $ | 6,558,790 |  |  | $ | 6,553,052 |  |  | $ | 5,992,707 |  |  | $ | 5,907,231 |
Less: accumulated depreciation |  | (1,023,993 | ) |  | (989,254 | ) |  | (989,480 | ) |  | (954,806 | ) |  | (920,409 | ) |  | (883,174 | )
Land held for development |  | 28,080 |  |  | 28,080 |  |  | 28,080 |  |  | 28,080 |  |  | 28,080 |  |  | 34,177 |
Property under development |  | 30,063 |  |  | 36,756 |  |  | 31,825 |  |  | 80,695 |  |  | 315,237 |  |  | 287,546 |
Operating lease right-of-use assets |  | 207,605 |  |  | 211,187 |  |  | 219,459 |  |  | 220,758 |  |  | 211,299 |  |  | — |
Mortgage notes and related accrued interest receivable |  | 356,666 |  |  | 357,391 |  |  | 413,695 |  |  | 550,131 |  |  | 527,627 |  |  | 517,467 |
Investment in direct financing leases, net |  | — |  |  | — |  |  | 20,727 |  |  | 20,675 |  |  | 20,616 |  |  | 20,558 |
Investment in joint ventures |  | 33,897 |  |  | 34,317 |  |  | 35,222 |  |  | 35,658 |  |  | 35,188 |  |  | 34,486 |
Cash and cash equivalents |  | 1,225,122 |  |  | 528,763 |  |  | 115,839 |  |  | 6,927 |  |  | 11,116 |  |  | 5,872 |
Restricted cash |  | 4,583 |  |  | 2,677 |  |  | 5,929 |  |  | 5,010 |  |  | 11,166 |  |  | 12,635 |
Accounts receivable |  | 72,537 |  |  | 86,858 |  |  | 99,190 |  |  | 108,433 |  |  | 111,146 |  |  | 98,369 |
Other assets |  | 112,095 |  |  | 94,174 |  |  | 94,014 |  |  | 92,042 |  |  | 87,458 |  |  | 96,223 |
Total assets |  | $ | 7,255,340 |  |  | $ | 6,577,511 |  |  | $ | 6,633,290 |  |  | $ | 6,746,655 |  |  | $ | 6,431,231 |  |  | $ | 6,131,390 |
LIABILITIES AND EQUITY |  |  |  |  |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable and accrued liabilities |  | $ | 112,167 |  |  | $ | 122,939 |  |  | $ | 121,351 |  |  | $ | 126,015 |  |  | $ | 117,746 |  |  | $ | 168,463 |
Operating lease liabilities |  | 232,343 |  |  | 235,650 |  |  | 244,358 |  |  | 245,372 |  |  | 235,612 |  |  | — |
Common dividends payable |  | 30,063 |  |  | 29,424 |  |  | 29,340 |  |  | 29,084 |  |  | 28,306 |  |  | 26,765 |
Preferred dividends payable |  | 6,034 |  |  | 6,034 |  |  | 6,034 |  |  | 6,034 |  |  | 6,034 |  |  | 6,034 |
Unearned rents and interest |  | 84,190 |  |  | 74,829 |  |  | 89,797 |  |  | 78,629 |  |  | 85,012 |  |  | 79,051 |
Line of credit |  | 750,000 |  |  | — |  |  | — |  |  | 240,000 |  |  | 70,000 |  |  | 30,000 |
Deferred financing costs, net |  | (35,933 | ) |  | (37,165 | ) |  | (38,384 | ) |  | (31,957 | ) |  | (32,838 | ) |  | (33,941 | )
Other debt |  | 3,139,995 |  |  | 3,139,995 |  |  | 3,139,995 |  |  | 3,008,580 |  |  | 3,008,580 |  |  | 2,989,995 |
Total liabilities |  | 4,318,859 |  |  | 3,571,706 |  |  | 3,592,491 |  |  | 3,701,757 |  |  | 3,518,452 |  |  | 3,266,367 |
Equity: |  |  |  |  |  |  |  |  |  |  |  |
Common stock and additional paid-in-capital |  | 3,845,911 |  |  | 3,835,674 |  |  | 3,815,278 |  |  | 3,759,032 |  |  | 3,597,916 |  |  | 3,505,266 |
Preferred stock at par value |  | 148 |  |  | 148 |  |  | 148 |  |  | 148 |  |  | 148 |  |  | 148 |
Treasury stock |  | (154,357 | ) |  | (147,435 | ) |  | (147,435 | ) |  | (147,143 | ) |  | (146,906 | ) |  | (130,728 | )
Accumulated other comprehensive income |  | (5,289 | ) |  | 7,275 |  |  | 4,659 |  |  | 5,174 |  |  | 8,397 |  |  | 12,085 |
Distributions in excess of net income |  | (749,932 | ) |  | (689,857 | ) |  | (631,851 | ) |  | (572,313 | ) |  | (546,776 | ) |  | (521,748 | )
Total equity |  | 2,936,481 |  |  | 3,005,805 |  |  | 3,040,799 |  |  | 3,044,898 |  |  | 2,912,779 |  |  | 2,865,023 |
Total liabilities and equity |  | $ | 7,255,340 |  |  | $ | 6,577,511 |  |  | $ | 6,633,290 |  |  | $ | 6,746,655 |  |  | $ | 6,431,231 |  |  | $ | 6,131,390 |

Q1 2020 Supplemental | Page 7

SELECTED OPERATING DATA
(UNAUDITED, DOLLARS IN THOUSANDS)
| 1ST QUARTER 2020 |  | 4TH QUARTER 2019 |  | 3RD QUARTER 2019 |  | 2ND QUARTER 2019 |  | 1ST QUARTER 2019 |  | 4TH QUARTER 2018
Rental revenue | $ | 135,043 |  |  | $ | 154,765 |  |  | $ | 150,962 |  |  | $ | 147,003 |  |  | $ | 140,292 |  |  | $ | 133,491 |
Other income | 7,573 |  |  | 8,386 |  |  | 11,464 |  |  | 5,726 |  |  | 344 |  |  | 435 |
Mortgage and other financing income | 8,396 |  |  | 7,195 |  |  | 6,930 |  |  | 9,011 |  |  | 9,891 |  |  | 16,991 |
Total revenue | 151,012 |  |  | 170,346 |  |  | 169,356 |  |  | 161,740 |  |  | 150,527 |  |  | 150,917 |
Property operating expense | 13,093 |  |  | 16,097 |  |  | 14,494 |  |  | 14,597 |  |  | 15,551 |  |  | 8,285 |
Other expense | 9,534 |  |  | 10,173 |  |  | 11,403 |  |  | 8,091 |  |  | — |  |  | 325 |
General and administrative expense | 10,988 |  |  | 10,831 |  |  | 11,600 |  |  | 12,230 |  |  | 11,710 |  |  | 12,165 |
Severance expense | — |  |  | 423 |  |  | 1,521 |  |  | — |  |  | 420 |  |  | 5,938 |
Costs associated with loan refinancing or payoff | — |  |  | — |  |  | 38,269 |  |  | — |  |  | — |  |  | — |
Interest expense, net | 34,753 |  |  | 34,914 |  |  | 36,667 |  |  | 36,458 |  |  | 33,963 |  |  | 33,584 |
Transaction costs | 1,075 |  |  | 5,784 |  |  | 5,959 |  |  | 6,923 |  |  | 5,123 |  |  | 1,583 |
Credit loss expense | 1,192 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Impairment charges | — |  |  | 2,206 |  |  | — |  |  | — |  |  | — |  |  | 10,735 |
Depreciation and amortization | 43,810 |  |  | 42,398 |  |  | 41,644 |  |  | 38,790 |  |  | 36,002 |  |  | 35,728 |
Income before equity in (loss) income from joint ventures and other items | 36,567 |  |  | 47,520 |  |  | 7,799 |  |  | 44,651 |  |  | 47,758 |  |  | 42,574 |
Equity in (loss) income from joint ventures | (420 | ) |  | (905 | ) |  | (435 | ) |  | 470 |  |  | 489 |  |  | (5 | )
Gain (loss) on sale of real estate | 220 |  |  | 3,717 |  |  | 845 |  |  | — |  |  | (388 | ) |  | 349 |
Income tax benefit (expense) | 751 |  |  | 530 |  |  | 600 |  |  | 1,300 |  |  | 605 |  |  | (108 | )
Income from continuing operations | 37,118 |  |  | 50,862 |  |  | 8,809 |  |  | 46,421 |  |  | 48,464 |  |  | 42,810 |
Discontinued operations: |  |  |  |  |  |  |  |  |  |  |
Income from discontinued operations before other items | — |  |  | 4,937 |  |  | 11,736 |  |  | 10,399 |  |  | 10,169 |  |  | 11,221 |
Impairment on public charter school portfolio sale | — |  |  | (21,433 | ) |  | — |  |  | — |  |  | — |  |  | — |
Gain on sale of real estate from discontinued operations | — |  |  | 1,931 |  |  | 13,458 |  |  | 9,774 |  |  | 6,716 |  |  | — |
(Loss) income from discontinued operations | — |  |  | (14,565 | ) |  | 25,194 |  |  | 20,173 |  |  | 16,885 |  |  | 11,221 |
Net income | 37,118 |  |  | 36,297 |  |  | 34,003 |  |  | 66,594 |  |  | 65,349 |  |  | 54,031 |
Preferred dividend requirements | (6,034 | ) |  | (6,034 | ) |  | (6,034 | ) |  | (6,034 | ) |  | (6,034 | ) |  | (6,034 | )
Net income available to common shareholders of EPR Properties | $ | 31,084 |  |  | $ | 30,263 |  |  | $ | 27,969 |  |  | $ | 60,560 |  |  | $ | 59,315 |  |  | $ | 47,997 |

Q1 2020 Supplemental | Page 8

FUNDS FROM OPERATIONS AND FUNDS FROM OPERATIONS AS ADJUSTED
(UNAUDITED, DOLLARS IN THOUSANDS EXCEPT PER SHARE INFORMATION)
FUNDS FROM OPERATIONS ("FFO") (1): |  | 1ST QUARTER 2020 |  | 4TH QUARTER 2019 |  | 3RD QUARTER 2019 |  | 2ND QUARTER 2019 |  | 1ST QUARTER 2019 |  | 4TH QUARTER 2018
Net income available to common shareholders of EPR Properties |  | $ | 31,084 |  |  | $ | 30,263 |  |  | $ | 27,969 |  |  | $ | 60,560 |  |  | $ | 59,315 |  |  | $ | 47,997 |
Gain on sale of real estate |  | (220 | ) |  | (5,648 | ) |  | (14,303 | ) |  | (9,774 | ) |  | (6,328 | ) |  | (349 | )
Impairment charges |  | — |  |  | 23,639 |  |  | — |  |  | — |  |  | — |  |  | 10,735 |
Real estate depreciation and amortization |  | 43,525 |  |  | 44,242 |  |  | 44,863 |  |  | 42,098 |  |  | 39,514 |  |  | 39,297 |
Allocated share of joint venture depreciation |  | 383 |  |  | 551 |  |  | 553 |  |  | 554 |  |  | 555 |  |  | 56 |
FFO available to common shareholders of EPR Properties |  | $ | 74,772 |  |  | $ | 93,047 |  |  | $ | 59,082 |  |  | $ | 93,438 |  |  | $ | 93,056 |  |  | $ | 97,736 |
FFO available to common shareholders of EPR Properties |  | $ | 74,772 |  |  | $ | 93,047 |  |  | $ | 59,082 |  |  | $ | 93,438 |  |  | $ | 93,056 |  |  | $ | 97,736 |
Add: Preferred dividends for Series C preferred shares |  | 1,939 |  |  | 1,937 |  |  | — |  |  | 1,939 |  |  | 1,939 |  |  | 1,939 |
Add: Preferred dividends for Series E preferred shares |  | 1,939 |  |  | 1,939 |  |  | — |  |  | 1,939 |  |  | 1,939 |  |  | 1,939 |
Diluted FFO available to common shareholders of EPR Properties |  | $ | 78,650 |  |  | $ | 96,923 |  |  | $ | 59,082 |  |  | $ | 97,316 |  |  | $ | 96,934 |  |  | $ | 101,614 |
FUNDS FROM OPERATIONS AS ADJUSTED ("FFOAA") (1): |  |  |  |  |  |  |  |  |  |  |  |
FFO available to common shareholders of EPR Properties |  | $ | 74,772 |  |  | $ | 93,047 |  |  | $ | 59,082 |  |  | $ | 93,438 |  |  | $ | 93,056 |  |  | $ | 97,736 |
Costs associated with loan refinancing or payoff |  | — |  |  | 43 |  |  | 38,407 |  |  | — |  |  | — |  |  | — |
Transaction costs |  | 1,075 |  |  | 5,784 |  |  | 5,959 |  |  | 6,923 |  |  | 5,123 |  |  | 1,583 |
Severance expense |  | — |  |  | 423 |  |  | 1,521 |  |  | — |  |  | 420 |  |  | 5,938 |
Termination fee included in gain on sale |  | — |  |  | 1,217 |  |  | 11,324 |  |  | 6,533 |  |  | 5,001 |  |  | — |
Credit loss expense |  | 1,192 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Deferred income tax benefit |  | (1,113 | ) |  | (847 | ) |  | (984 | ) |  | (1,675 | ) |  | (609 | ) |  | (182 | )
FFO as adjusted available to common shareholders of EPR Properties |  | $ | 75,926 |  |  | $ | 99,667 |  |  | $ | 115,309 |  |  | $ | 105,219 |  |  | $ | 102,991 |  |  | $ | 105,075 |
FFO as adjusted available to common shareholders of EPR Properties |  | $ | 75,926 |  |  | $ | 99,667 |  |  | $ | 115,309 |  |  | $ | 105,219 |  |  | $ | 102,991 |  |  | $ | 105,075 |
Add: Preferred dividends for Series C preferred shares |  | 1,939 |  |  | 1,937 |  |  | 1,939 |  |  | 1,939 |  |  | 1,939 |  |  | 1,939 |
Add: Preferred dividends for Series E preferred shares |  | 1,939 |  |  | 1,939 |  |  | 1,939 |  |  | 1,939 |  |  | 1,939 |  |  | 1,939 |
Diluted FFO as adjusted available to common shareholders of EPR Properties |  | $ | 79,804 |  |  | $ | 103,543 |  |  | $ | 119,187 |  |  | $ | 109,097 |  |  | $ | 106,869 |  |  | $ | 108,953 |
FFO per common share: |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.95 |  |  | $ | 1.19 |  |  | $ | 0.76 |  |  | $ | 1.23 |  |  | $ | 1.25 |  |  | $ | 1.31 |
Diluted |  | 0.95 |  |  | 1.18 |  |  | 0.76 |  |  | 1.22 |  |  | 1.23 |  |  | 1.30 |
FFO as adjusted per common share: |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.97 |  |  | $ | 1.27 |  |  | $ | 1.49 |  |  | $ | 1.38 |  |  | $ | 1.38 |  |  | $ | 1.41 |
Diluted |  | 0.97 |  |  | 1.26 |  |  | 1.46 |  |  | 1.36 |  |  | 1.36 |  |  | 1.39 |
Shares used for computation (in thousands): |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | 78,467 |  |  | 78,456 |  |  | 77,632 |  |  | 76,164 |  |  | 74,679 |  |  | 74,343 |
Diluted |  | 78,476 |  |  | 78,485 |  |  | 77,664 |  |  | 76,199 |  |  | 74,725 |  |  | 74,402 |
Effect of dilutive Series C preferred shares |  | 2,232 |  |  | 2,184 |  |  | 2,170 |  |  | 2,158 |  |  | 2,145 |  |  | 2,133 |
Effect of dilutive Series E preferred shares |  | 1,664 |  |  | 1,640 |  |  | 1,634 |  |  | 1,628 |  |  | 1,622 |  |  | 1,615 |
Adjusted weighted-average shares outstanding-diluted Series C and Series E |  | 82,372 |  |  | 82,309 |  |  | 81,468 |  |  | 79,985 |  |  | 78,492 |  |  | 78,150 |
(1) See pages 23 through 25 for definitions. |  |  |  |  |  |  |  |  |  |  |  |
Amounts above include the impact of discontinued operations, which are separately classified in the consolidated statements of income.

Q1 2020 Supplemental | Page 9

ADJUSTED FUNDS FROM OPERATIONS
(UNAUDITED, DOLLARS IN THOUSANDS EXCEPT PER SHARE INFORMATION)
ADJUSTED FUNDS FROM OPERATIONS ("AFFO") (1): |  | 1ST QUARTER 2020 |  | 4TH QUARTER 2019 |  | 3RD QUARTER 2019 |  | 2ND QUARTER 2019 |  | 1ST QUARTER 2019 |  | 4TH QUARTER 2018
FFO available to common shareholders of EPR Properties |  | $ | 74,772 |  |  | $ | 93,047 |  |  | $ | 59,082 |  |  | $ | 93,438 |  |  | $ | 93,056 |  |  | $ | 97,736 |
Adjustments: |  |  |  |  |  |  |  |  |  |  |  |
Costs associated with loan refinancing or payoff |  | — |  |  | 43 |  |  | 38,407 |  |  | — |  |  | — |  |  | — |
Transaction costs |  | 1,075 |  |  | 5,784 |  |  | 5,959 |  |  | 6,923 |  |  | 5,123 |  |  | 1,583 |
Credit loss expense |  | 1,192 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Severance expense |  | — |  |  | 423 |  |  | 1,521 |  |  | — |  |  | 420 |  |  | 5,938 |
Termination fees included in gain on sale |  | — |  |  | 1,217 |  |  | 11,324 |  |  | 6,533 |  |  | 5,001 |  |  | — |
Deferred income tax benefit |  | (1,113 | ) |  | (847 | ) |  | (984 | ) |  | (1,675 | ) |  | (609 | ) |  | (182 | )
Non-real estate depreciation and amortization |  | 285 |  |  | 288 |  |  | 271 |  |  | 257 |  |  | 229 |  |  | 244 |
Deferred financing fees amortization |  | 1,634 |  |  | 1,621 |  |  | 1,552 |  |  | 1,517 |  |  | 1,502 |  |  | 1,490 |
Share-based compensation expense to management and trustees |  | 3,509 |  |  | 3,349 |  |  | 3,372 |  |  | 3,283 |  |  | 3,177 |  |  | 3,816 |
Amortization of above/below market leases, net and tenant allowances |  | (152 | ) |  | (119 | ) |  | (107 | ) |  | (58 | ) |  | (59 | ) |  | (54 | )
Maintenance capital expenditures (2) |  | (928 | ) |  | (2,276 | ) |  | (2,370 | ) |  | (510 | ) |  | (297 | ) |  | (336 | )
Straight-lined rental revenue |  | 9,708 |  |  | (3,516 | ) |  | (4,399 | ) |  | (3,223 | ) |  | (2,414 | ) |  | (3,216 | )
Non-cash portion of mortgage and other financing income |  | (91 | ) |  | (91 | ) |  | (237 | ) |  | (1,069 | ) |  | (1,014 | ) |  | (784 | )
AFFO available to common shareholders of EPR Properties |  | $ | 89,891 |  |  | $ | 98,923 |  |  | $ | 113,391 |  |  | $ | 105,416 |  |  | $ | 104,115 |  |  | $ | 106,235 |
AFFO available to common shareholders of EPR Properties |  | $ | 89,891 |  |  | $ | 98,923 |  |  | $ | 113,391 |  |  | $ | 105,416 |  |  | $ | 104,115 |  |  | $ | 106,235 |
Add: Preferred dividends for Series C preferred shares |  | 1,939 |  |  | 1,937 |  |  | 1,939 |  |  | 1,939 |  |  | 1,939 |  |  | 1,939 |
Add: Preferred dividends for Series E preferred shares |  | 1,939 |  |  | 1,939 |  |  | 1,939 |  |  | 1,939 |  |  | 1,939 |  |  | 1,939 |
Diluted AFFO available to common shareholders of EPR Properties |  | $ | 93,769 |  |  | $ | 102,799 |  |  | $ | 117,269 |  |  | $ | 109,294 |  |  | $ | 107,993 |  |  | $ | 110,113 |
Weighted average diluted shares outstanding (in thousands) |  | 78,476 |  |  | 78,485 |  |  | 77,664 |  |  | 76,199 |  |  | 74,725 |  |  | 74,402 |
Effect of dilutive Series C preferred shares |  | 2,232 |  |  | 2,184 |  |  | 2,170 |  |  | 2,158 |  |  | 2,145 |  |  | 2,133 |
Effect of dilutive Series E preferred shares |  | 1,664 |  |  | 1,640 |  |  | 1,634 |  |  | 1,628 |  |  | 1,622 |  |  | 1,615 |
Adjusted weighted-average shares outstanding-diluted |  | 82,372 |  |  | 82,309 |  |  | 81,468 |  |  | 79,985 |  |  | 78,492 |  |  | 78,150 |
AFFO per diluted common share |  | $ | 1.14 |  |  | $ | 1.25 |  |  | $ | 1.44 |  |  | $ | 1.37 |  |  | $ | 1.38 |  |  | $ | 1.41 |
Dividends declared per common share |  | $ | 1.1325 |  |  | $ | 1.1250 |  |  | $ | 1.1250 |  |  | $ | 1.1250 |  |  | $ | 1.1250 |  |  | $ | 1.0800 |
AFFO payout ratio (3) |  | 99 | % |  | 90 | % |  | 78 | % |  | 82 | % |  | 82 | % |  | 77 | %
(1) See pages 23 through 25 for definitions.
(2) Includes maintenance capital expenditures and certain second generation tenant improvements and leasing commissions.
(3) AFFO payout ratio is calculated by dividing dividends declared per common share by AFFO per diluted common share.
Amounts above include the impact of discontinued operations, which are separately classified in the consolidated statements of income.

Q1 2020 Supplemental | Page 10

CAPITAL STRUCTURE AS OF MARCH 31, 2020
(UNAUDITED, DOLLARS IN THOUSANDS)
CONSOLIDATED DEBT
PRINCIPAL PAYMENTS DUE ON DEBT:
|  | BONDS/TERM LOAN/OTHER (1) (2) |  | UNSECURED CREDIT FACILITY (3) |  | UNSECURED SENIOR NOTES |  | TOTAL |  | WEIGHTED AVG INTEREST RATE |
YEAR |  |  |  |  |  |
2020 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | —% |
2021 |  | — |  |  | — |  |  | — |  |  | — |  |  | —% |
2022 |  | — |  |  | 750,000 |  |  | — |  |  | 750,000 |  |  | 1.77% |
2023 |  | 400,000 |  |  | — |  |  | 275,000 |  |  | 675,000 |  |  | 4.02% |
2024 |  | — |  |  | — |  |  | 148,000 |  |  | 148,000 |  |  | 4.35% |
2025 |  | — |  |  | — |  |  | 300,000 |  |  | 300,000 |  |  | 4.50% |
2026 |  | — |  |  | — |  |  | 642,000 |  |  | 642,000 |  |  | 4.69% |
2027 |  | — |  |  | — |  |  | 450,000 |  |  | 450,000 |  |  | 4.50% |
2028 |  | — |  |  | — |  |  | 400,000 |  |  | 400,000 |  |  | 4.95% |
2029 |  | — |  |  | — |  |  | 500,000 |  |  | 500,000 |  |  | 3.75% |
2030 |  | — |  |  | — |  |  | — |  |  | — |  |  | —% |
Thereafter |  | 24,995 |  |  | — |  |  | — |  |  | 24,995 |  |  | 1.39% |
Less: deferred financing costs, net |  | — |  |  | — |  |  | — |  |  | (35,933 | ) |  | —% |
|  | $ | 424,995 |  |  | $ | 750,000 |  |  | $ | 2,715,000 |  |  | $ | 3,854,062 |  |  | 3.85% |
|  |  |  | BALANCE |  | WEIGHTED AVG INTEREST RATE |  | WEIGHTED AVG MATURITY |  |  |
Fixed rate unsecured debt (1) |  | $ | 3,115,000 |  |  | 4.37 | % |  | 6.29 |  |  |  |
Fixed rate secured debt (2) |  | 24,995 |  |  | 1.39 | % |  | 27.33 |  |  |  |
Variable rate unsecured debt |  | 750,000 |  |  | 1.77 | % |  | 1.91 |  |  |  |
Less: deferred financing costs, net |  | (35,933 | ) |  | — | % |  | — |  |  |  |
Total |  |  |  | $ | 3,854,062 |  |  | 3.85 | % |  | 5.58 |  |  |  |
(1) Includes $400 million of term loan that has been fixed through interest rate swaps through February 7, 2022.
(2) Includes $25 million of secured bonds that have been fixed through interest rate swaps through September 30, 2024.
(3) Unsecured Revolving Credit Facility Summary:
|  |  |  | BALANCE |  |  |  | RATE |  |  |
|  | COMMITMENT |  | AT 3/31/2020 |  | MATURITY |  | AT 3/31/2020 |  |  |
|  | $1,000,000 |  | $ | 750,000 |  |  | February 27, 2022 |  | 1.77% |  |  |
|  | Note: This facility has a seven-month extension available at the Company's option (solely with respect to the unsecured revolving credit portion of the facility) and includes an accordion feature pursuant to which the maximum borrowing amount under the combined unsecured revolving credit and term loan facility can be increased from $1.4 billion to $2.4 billion, in each case, subject to certain terms and conditions. |  |  |

Q1 2020 Supplemental | Page 11

CAPITAL STRUCTURE AS OF MARCH 31, 2020 AND DECEMBER 31, 2019
(UNAUDITED, DOLLARS IN THOUSANDS)
CONSOLIDATED DEBT (continued)
SUMMARY OF DEBT: |  | March 31, 2020 |  | December 31, 2019
Unsecured revolving variable rate credit facility, LIBOR + 1.00%, due February 27, 2022 |  | 750,000 |  |  | — |
Unsecured term loan payable, LIBOR + 1.10%, $350,000 fixed at 3.15% and $50,000 fixed at 3.35% through February 7, 2022, due February 27, 2023 |  | 400,000 |  |  | 400,000 |
Senior unsecured notes payable, 5.25%, due July 15, 2023 |  | 275,000 |  |  | 275,000 |
Senior unsecured notes payable, 4.35%, due August 22, 2024 |  | 148,000 |  |  | 148,000 |
Senior unsecured notes payable, 4.50%, due April 1, 2025 |  | 300,000 |  |  | 300,000 |
Senior unsecured notes payable, 4.56%, due August 22, 2026 |  | 192,000 |  |  | 192,000 |
Senior unsecured notes payable, 4.75%, due December 15, 2026 |  | 450,000 |  |  | 450,000 |
Senior unsecured notes payable, 4.50%, due June 1, 2027 |  | 450,000 |  |  | 450,000 |
Senior unsecured notes payable, 4.95%, due April 15, 2028 |  | 400,000 |  |  | 400,000 |
Senior unsecured notes payable, 3.75%, due August 15, 2029 |  | 500,000 |  |  | 500,000 |
Bonds payable, variable rate, fixed at 1.39% through September 30, 2024, due August 1, 2047 |  | 24,995 |  |  | 24,995 |
Less: deferred financing costs, net |  | (35,933 | ) |  | (37,165 | )
Total debt |  | $ | 3,854,062 |  |  | $ | 3,102,830 |

Q1 2020 Supplemental | Page 12

CAPITAL STRUCTURE
SENIOR NOTES
SENIOR DEBT RATINGS AS OF MARCH 31, 2020
Moody's |  | Baa2 (stable) |  |  |  |  |
Fitch |  | BBB- (negative) |  |  |  |  |
Standard and Poor's |  | BBB- (negative) |  |  |  |  |
SUMMARY OF COVENANTS
The Company has outstanding public senior unsecured notes with fixed interest rates of 3.75%, 4.50%, 4.75%, 4.95% and 5.25%. Interest on these notes is paid semiannually. These public senior unsecured notes contain various covenants, including: (i) a limitation on incurrence of any debt that would cause the Company's debt to adjusted total assets ratio to exceed 60%; (ii) a limitation on incurrence of any secured debt which would cause the Company’s secured debt to adjusted total assets ratio to exceed 40%; (iii) a limitation on incurrence of any debt which would cause the Company’s debt service coverage ratio to be less than 1.5 times; and (iv) the maintenance at all times of total unencumbered assets not less than 150% of the Company’s outstanding unsecured debt. |
The following is a summary of the key financial covenants for the Company's 3.75%, 4.50%, 4.75%, 4.95% and 5.25% public senior unsecured notes, as defined and calculated per the terms of the notes. These calculations, which are not based on U.S. generally accepted accounting principles, or GAAP, measurements, are presented to investors to show the Company's ability to incur additional debt under the terms of the senior unsecured notes only and are not measures of the Company's liquidity or performance. The actual amounts as of March 31, 2020 and December 31, 2019 are: |
|  |  |  | Actual |  | Actual |
NOTE COVENANTS |  | Required |  | 1st Quarter 2020 (1) |  | 4th Quarter 2019 (1) |
Limitation on incurrence of total debt (Total Debt/Total Assets) |  | ≤ 60% |  | 47% |  | 42% |
Limitation on incurrence of secured debt (Secured Debt/Total Assets) |  | ≤ 40% |  | —% |  | —% |
Limitation on incurrence of debt: Debt service coverage (Consolidated Income Available for Debt Service/Annual Debt Service) - trailing twelve months |  | ≥ 1.5 x |  | 3.8x |  | 3.9x |
Maintenance of total unencumbered assets (Unencumbered Assets/Unsecured Debt) |  | ≥ 150% of unsecured debt |  | 200% |  | 225% |
(1) See page 14 for details of calculations. |  |  |  |  |  |  |

Q1 2020 Supplemental | Page 13

CAPITAL STRUCTURE
SENIOR NOTES
(UNAUDITED, DOLLARS IN THOUSANDS)
COVENANT CALCULATIONS
TOTAL ASSETS: | March 31, 2020 |  |  |  | TOTAL DEBT: |  |  |  | March 31, 2020
Total Assets per balance sheet | $ | 7,255,340 |  |  |  |  | Secured debt obligations | $ | 24,995 |
Add: accumulated depreciation | 1,023,993 |  |  |  |  | Unsecured debt obligations: |  |
Less: intangible assets, net | (45,253 | ) |  |  |  | Unsecured debt |  | 3,865,000 |
Total Assets | $ | 8,234,080 |  |  |  |  | Outstanding letters of credit |  | — |
|  |  |  |  | Guarantees |  | — |
|  |  |  |  | Derivatives at fair market value, net, if liability | — |
|  |  |  |  | Total unsecured debt obligations: |  | 3,865,000 |
TOTAL UNENCUMBERED ASSETS: | March 31, 2020 |  |  |  | Total Debt |  | $ | 3,889,995 |
Unencumbered real estate assets, gross | $ | 6,444,120 |  |  |  |  |  |  |  |  |
Cash and cash equivalents | 1,225,122 |  |  |  |  |  |  |  |  |
Land held for development | 28,080 |  |  |  |  |  |  |  |  |
Property under development | 30,063 |  |  |  |  |  |  |  |  |
Total Unencumbered Assets | $ | 7,727,385 |  |  |  |  |  |  |  |  |
CONSOLIDATED INCOME AVAILABLE FOR DEBT SERVICE: | 1ST QUARTER 2020 |  | 4TH QUARTER 2019 |  | 3RD QUARTER 2019 |  | 2ND QUARTER 2019 |  | TRAILING TWELVE MONTHS
Adjusted EBITDA per bond documents | $ | 117,397 |  | (1) | $ | 140,350 |  |  | $ | 147,196 |  | (2) | $ | 140,606 |  |  | $ | 545,549 |
Less: straight-line rental revenue | 9,708 |  |  | (3,516 | ) |  | (4,399 | ) |  | (3,223 | ) |  | (1,430 | )
CONSOLIDATED INCOME AVAILABLE FOR DEBT SERVICE | $ | 127,105 |  |  | $ | 136,834 |  |  | $ | 142,797 |  |  | $ | 137,383 |  |  | $ | 544,119 |
ANNUAL DEBT SERVICE: |  |  |  |  |  |  |  |  |
Interest expense, gross | $ | 36,794 |  |  | $ | 36,442 |  |  | $ | 37,575 |  |  | $ | 37,999 |  |  | $ | 148,810 |
Less: deferred financing fees amortization | (1,634 | ) |  | (1,621 | ) |  | (1,552 | ) |  | (1,517 | ) |  | (6,324 | )
ANNUAL DEBT SERVICE | $ | 35,160 |  |  | $ | 34,821 |  |  | $ | 36,023 |  |  | $ | 36,482 |  |  | $ | 142,486 |
DEBT SERVICE COVERAGE | 3.6 |  |  | 3.9 |  |  | 4.0 |  |  | 3.8 |  |  | 3.8 |
(1) Includes straight-line rental revenue write-offs.
(2) Includes prepayment fees.
Amounts above include the impact of discontinued operations, which are separately classified in the consolidated statements of income.

Q1 2020 Supplemental | Page 14

CAPITAL STRUCTURE AS OF MARCH 31, 2020
(UNAUDITED, DOLLARS IN THOUSANDS EXCEPT SHARE INFORMATION)
EQUITY
SECURITY |  | SHARES OUTSTANDING |  | PRICE PER SHARE AT MARCH 31, 2020 |  | LIQUIDIATION PREFERENCE |  | DIVIDEND RATE |  | CONVERTIBLE |  | CONVERSION RATIO AT MARCH 31, 2020 |  | CONVERSION PRICE AT MARCH 31, 2020
Common shares |  | 78,587,584 |  | $24.22 |  | N/A |  | (1) |  | N/A |  | N/A |  | N/A
Series C |  | 5,394,050 |  | $15.79 |  | $134,851 |  | 5.750% |  | Y |  | 0.4137 |  | $60.43
Series E |  | 3,447,381 |  | $21.51 |  | $86,185 |  | 9.000% |  | Y |  | 0.4826 |  | $51.80
Series G |  | 6,000,000 |  | $15.55 |  | $150,000 |  | 5.750% |  | N |  | N/A |  | N/A
(1) Total monthly dividends declared in the first quarter of 2020 were $1.1325 per share. |  |  |  |

Q1 2020 Supplemental | Page 15

SUMMARY OF RATIOS
(UNAUDITED)
| 1ST QUARTER 2020 |  | 4TH QUARTER 2019 |  | 3RD QUARTER 2019 |  | 2ND QUARTER 2019 |  | 1ST QUARTER 2019 |  | 4TH QUARTER 2018
Net debt to gross assets | 38% |  | 35% |  | 40% |  | 42% |  | 42% |  | 43%
Net debt/Adjusted EBITDA (1)(2) | 5.1 |  | 4.7 |  | 5.2 |  | 5.8 |  | 5.6 |  | 5.5
Adjusted net debt/Annualized adjusted EBITDA (3)(4) | 4.9 |  | 4.8 |  | 5.2 |  | 5.5 |  | 5.4 |  | 5.4
Interest coverage ratio (5) | 3.6 |  | 3.8 |  | 3.8 |  | 3.7 |  | 3.7 |  | 3.8
Fixed charge coverage ratio (5) | 3.1 |  | 3.3 |  | 3.3 |  | 3.2 |  | 3.2 |  | 3.3
Debt service coverage ratio (5) | 3.6 |  | 3.8 |  | 3.8 |  | 3.7 |  | 3.7 |  | 3.8
FFO payout ratio (6) | 119% |  | 95% |  | 148% |  | 92% |  | 91% |  | 83%
FFO as adjusted payout ratio (7) | 117% |  | 89% |  | 77% |  | 83% |  | 83% |  | 78%
AFFO payout ratio (8) | 99% |  | 90% |  | 78% |  | 82% |  | 82% |  | 77%
(1) See pages 23 through 25 for definitions.
(2) Adjusted EBITDA is for the quarter multiplied times four. See calculation on page 29.
(3) Adjusted net debt is net debt less 40% times property under development. See pages 23 through 25 for definitions.
(4) Annualized adjusted EBITDA is Adjusted EBITDA for the quarter further adjusted for in-service and disposed projects, percentage rent and participating interest and other non-recurring items which is then multiplied times four. These calculations can be found on page 29 under the reconciliation of Adjusted EBITDA and Annualized Adjusted EBITDA. See pages 23 through 25 for definitions.
(5) See page 27 for detailed calculation.
(6) FFO payout ratio is calculated by dividing dividends declared per common share by FFO per diluted common share.
(7) FFO as adjusted payout ratio is calculated by dividing dividends declared per common share by FFO as adjusted per diluted common share.
(8) AFFO payout ratio is calculated by dividing dividends declared per common share by AFFO per diluted common share.

Q1 2020 Supplemental | Page 16

SUMMARY OF MORTGAGE NOTES RECEIVABLE
(UNAUDITED, DOLLARS IN THOUSANDS)
DESCRIPTION | INTEREST RATE | PAYOFF DATE/MATURITY DATE | MARCH 31, 2020 |  | DECEMBER 31, 2019 (1)
Attraction property Powells Point, North Carolina | 7.75% | 6/30/2025 | $ | 27,090 |  |  | $ | 27,423 |
Fitness & wellness property Omaha, Nebraska | 7.85% | 12/28/2026 | 5,799 |  |  | 5,803 |
Fitness & wellness property Omaha, Nebraska | 7.85% | 1/3/2027 | 10,904 |  |  | 10,977 |
Fitness & wellness property Merriam, Kansas | 7.55% | 7/31/2029 | 7,968 |  |  | 5,985 |
Ski property Girdwood, Alaska | 8.25% | 12/31/2029 | 36,998 |  |  | 37,000 |
Experiential lodging property Nashville, Tennessee | 6.99% | 9/30/2031 | 68,650 |  |  | 70,396 |
Eat & play property Austin, Texas | 11.31% | 6/1/2033 | 11,487 |  |  | 11,582 |
Ski property West Dover and Wilmington, Vermont | 11.61% | 12/1/2034 | 51,038 |  |  | 51,050 |
Four ski properties Ohio and Pennsylvania | 10.75% | 12/1/2034 | 37,464 |  |  | 37,562 |
Ski property Chesterland, Ohio | 11.21% | 12/1/2034 | 4,430 |  |  | 4,550 |
Ski property Hunter, New York | 8.57% | 1/5/2036 | 21,000 |  |  | 21,000 |
Eat & play property Midvale, Utah | 10.25% | 5/31/2036 | 17,504 |  |  | 17,505 |
Eat & play property West Chester, Ohio | 9.75% | 8/1/2036 | 18,062 |  |  | 18,068 |
Private school property Mableton, Georgia | 8.84% | 4/30/2037 | 5,052 |  |  | 5,048 |
Fitness & wellness property Fort Collins, Colorado | 7.85% | 1/31/2038 | 10,163 |  |  | 10,360 |
Early childhood education center Lake Mary, Florida | 7.75% | 5/9/2039 | 4,241 |  |  | 4,258 |
Eat & play property Eugene, Oregon | 8.13% | 6/17/2039 | 14,794 |  |  | 14,800 |
Early childhood education center Lithia, Florida | 8.25% | 10/31/2039 | 4,022 |  |  | 4,024 |
Total mortgage notes and related accrued interest receivable |  |  | $ | 356,666 |  |  | $ | 357,391 |

(1) Balances as of December 31, 2019 are prior to the adoption of ASC Topic 326.

Q1 2020 Supplemental | Page 17

INVESTMENT SPENDING AND DISPOSITION SUMMARIES
(UNAUDITED, DOLLARS IN THOUSANDS) |
INVESTMENT SPENDING THREE MONTHS ENDED MARCH 31, 2020
INVESTMENT TYPE | TOTAL INVESTMENT SPENDING | NEW DEVELOPMENT | RE-DEVELOPMENT |  | ASSET ACQUISITION | MORTGAGE NOTES OR NOTES RECEIVABLE | INVESTMENT IN JOINT VENTURES
Theatres | $ | 24,108 |  | $ | 650 |  | $ | 1,350 |  |  | $ | 22,108 |  | $ | — |  | $ | — |
Eat & Play | 5,073 |  | 4,985 |  | 88 |  |  | — |  | — |  | — |
Attractions | 959 |  | — |  | 959 |  |  | — |  | — |  | — |
Experiential Lodging | 9,797 |  | 9,580 |  | 217 |  |  | — |  | — |  | — |
Cultural | 6 |  | — |  | 6 |  |  | — |  | — |  | — |
Fitness & Wellness | 1,999 |  | — |  | — |  |  | — |  | 1,999 |  | — |
Total Experiential | 41,942 |  | 15,215 |  | 2,620 |  |  | 22,108 |  | 1,999 |  | — |
Early Childhood Education Centers | 3 |  | — |  | — |  |  | — |  | 3 |  | — |
Total Education | 3 |  | — |  | — |  |  | — |  | 3 |  | — |
Total Investment Spending | $ | 41,945 |  | $ | 15,215 |  | $ | 2,620 |  |  | $ | 22,108 |  | $ | 2,002 |  | $ | — |
2020 DISPOSITIONS |  |  |  |
| THREE MONTHS ENDED MARCH 31, 2020 |  |  |  |
INVESTMENT TYPE | TOTAL DISPOSITIONS | NET PROCEEDS FROM SALE OF REAL ESTATE | NET PROCEEDS FROM PAYDOWN OF MORTGAGE NOTES |  |  |  |
Early Childhood Education Centers | 2,907 |  | 2,907 |  | — |  |  |  |  |  |
Total Dispositions | $ | 2,907 |  | $ | 2,907 |  | $ | — |  |  |  |  |

Q1 2020 Supplemental | Page 18

PROPERTY UNDER DEVELOPMENT - INVESTMENT SPENDING ESTIMATES AT MARCH 31, 2020 (1)
(UNAUDITED, DOLLARS IN THOUSANDS)
|  | MARCH 31, 2020 |  | OWNED BUILD-TO-SUIT SPENDING ESTIMATES |  |  |  |
|  | PROPERTY UNDER DEVELOPMENT |  | # OF PROJECTS |  | 2ND QUARTER 2020 | 3RD QUARTER 2020 | 4TH QUARTER 2020 | 1ST QUARTER 2021 |  | THEREAFTER |  | TOTAL EXPECTED COSTS (2) |  | % LEASED
Total Build-to-Suit (3) | $ | 15,228 |  |  | 5 |  | $ | 5,181 |  | $ | 7,576 |  | $ | 8,239 |  | $ | 6,141 |  |  | $ | 2,617 |  |  | $ | 44,982 |  |  | 100 | %
Non Build-to-Suit Development | 14,835 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Property Under Development | $ | 30,063 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | MARCH 31, 2020 |  | OWNED BUILD-TO-SUIT IN-SERVICE ESTIMATES |  |  |  |
|  |  |  | # OF PROJECTS |  | 2ND QUARTER 2020 | 3RD QUARTER 2020 | 4TH QUARTER 2020 | 1ST QUARTER 2021 |  | THEREAFTER |  | TOTAL IN-SERVICE (2) |  | ACTUAL IN-SERVICE 1ST QUARTER 2020
Total Build-to-Suit |  |  | 5 |  | $ | — |  | $ | — |  | $ | 18,716 |  | $ | 26,266 |  |  | $ | — |  |  | $ | 44,982 |  |  | $ | 25,149 |
|  | MARCH 31, 2020 |  | MORTGAGE BUILD-TO-SUIT SPENDING ESTIMATES |  |  |  |
|  | MORTGAGE NOTES RECEIVABLE |  | # OF PROJECTS |  | 2ND QUARTER 2020 | 3RD QUARTER 2020 | 4TH QUARTER 2020 | 1ST QUARTER 2021 |  | THEREAFTER |  | TOTAL EXPECTED COSTS (2) |  |
Total Build-to-Suit Mortgage Notes | $ | 44,966 |  |  | 2 |  | $ | 1,667 |  | $ | 3,333 |  | $ | 3,333 |  | $ | 3,333 |  |  | $ | 10,002 |  |  | $ | 66,634 |  |  |
Non Build-to-Suit Mortgage Notes | 311,700 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Mortgage Notes Receivable | $ | 356,666 |  |  |  |  |  |  |  |  |  |  |  |  |  |
(1) This schedule includes only those properties for which the Company has commenced construction as of March 31, 2020
(2) "Total Expected Costs" and "Total In-Service" each reflect the total capital costs expected to be funded by the Company through completion (including capitalized interest or accrued interest as applicable).
(3) Total Build-to-Suit excludes property under development related to the Company's two unconsolidated real estate joint ventures that own recreation anchored lodging properties in St. Petersburg, Florida. The Company's spending estimates for this are estimated at $14.6 million for 2020.
Note: This schedule includes future estimates for which the Company can give no assurance as to timing or amounts. Development projects have risks. See Item 1A - "Risk Factors" in the Company's most recent Annual Report on Form 10-K and, to the extent applicable, the Company's Quarterly Reports on Form 10-Q.

Q1 2020 Supplemental | Page 19

ANNUALIZED ADJUSTED REVENUE BY PROPERTY TYPE
AS OF MARCH 31, 2020
(UNAUDITED, DOLLARS IN THOUSANDS)
|  | TOTAL NUMBER OF |  | ANNUALIZED |  | PERCENTAGE OF ANNUALIZED
PROPERTY TYPE |  | PROPERTIES |  | ADJUSTED REVENUE (1) |  | ADJUSTED REVENUE
Theatres |  | 181 |  |  | $ | 272,384 |  |  | 45.5%
Eat & Play |  | 56 |  |  | 134,998 |  |  | 22.6%
Attractions |  | 18 |  |  | 35,495 |  |  | 5.9%
Ski |  | 13 |  |  | 45,287 |  |  | 7.6%
Experiential Lodging |  | 6 |  |  | 20,990 |  |  | 3.5%
Gaming |  | 1 |  |  | 11,187 |  |  | 1.9%
Cultural |  | 3 |  |  | 7,136 |  |  | 1.2%
Fitness & Wellness |  | 7 |  |  | 5,487 |  |  | 0.9%
Total Experiential Portfolio |  | 285 |  |  | $ | 532,964 |  |  | 89.1%
Early Childhood Education Centers |  | 70 |  |  | 31,390 |  |  | 5.3%
Private Schools |  | 16 |  |  | 33,174 |  |  | 5.6%
Total Education Portfolio |  | 86 |  |  | $ | 64,564 |  |  | 10.9%
Total |  | 371 |  |  | $ | 597,528 |  |  | 100.0%
(1) Annualized Adjusted Revenue by property type is a Non-GAAP financial measure. See pages 23 through 25 for definitions. See calculation on page 29.

Q1 2020 Supplemental | Page 20

LEASE EXPIRATIONS
AS OF MARCH 31, 2020
(UNAUDITED, DOLLARS IN THOUSANDS)
YEAR |  | TOTAL NUMBER OF PROPERTIES |  | RENTAL REVENUE FOR THE TRAILING TWELVE MONTHS ENDED MARCH 31, 2020 (1)(2) |  | % OF TOTAL REVENUE (2) |
2020 |  | 1 |  |  | $ | 1,547 |  |  | — | % |
2021 |  | 7 |  |  | 9,527 |  |  | 1 | % |
2022 |  | 11 |  |  | 21,892 |  |  | 3 | % |
2023 |  | 9 |  |  | 17,885 |  |  | 3 | % |
2024 |  | 14 |  |  | 29,528 |  |  | 5 | % |
2025 |  | 7 |  |  | 13,176 |  |  | 2 | % |
2026 |  | 11 |  |  | 22,574 |  |  | 3 | % |
2027 |  | 20 |  |  | 43,045 |  |  | 7 | % |
2028 |  | 17 |  |  | 27,629 |  |  | 4 | % |
2029 |  | 15 |  |  | 25,528 |  |  | 4 | % |
2030 |  | 20 |  |  | 27,476 |  |  | 4 | % |
2031 |  | 22 |  |  | 23,761 |  |  | 4 | % |
2032 |  | 16 |  |  | 18,170 |  |  | 3 | % |
2033 |  | 12 |  |  | 14,650 |  |  | 2 | % |
2034 |  | 36 |  |  | 56,773 |  |  | 9 | % |
2035 |  | 17 |  |  | 50,461 |  |  | 8 | % |
2036 |  | 10 |  |  | 23,950 |  |  | 4 | % |
2037 |  | 24 |  |  | 47,096 |  |  | 7 | % |
2038 |  | 14 |  |  | 26,069 |  |  | 4 | % |
2039 |  | 24 |  |  | 20,039 |  |  | 3 | % |
Thereafter |  | 37 |  |  | 28,794 |  |  | 4 | % |
|  | 344 |  |  | $ | 549,570 |  |  | 84 | % |
Note: This schedule excludes non-theatre tenant leases within the Company's entertainment districts, properties under development, land held for development, properties operated by the Company and investments in mortgage notes receivable.
(1) Rental revenue for the trailing twelve months ended March 31, 2020 includes lease revenue related to the Company's existing operating ground leases (leases in which the Company is a sub-lessor) as well as the gross-up of tenant reimbursed expenses recognized during the trailing twelve months ended March 31, 2020 in accordance with Accounting Standards Update (ASU) No. 2016-02 Leases (Topic 842).
(2) Excludes revenue from discontinued operations and includes the write-offs of straight line rent receivables of $12.5 million against rental revenue during the three months ended March 31, 2020.

Q1 2020 Supplemental | Page 21

TOP TEN CUSTOMERS BY PERCENTAGE OF TOTAL REVENUE |
(UNAUDITED, DOLLARS IN THOUSANDS)
|  |  | PERCENTAGE OF TOTAL REVENUE |
|  |  | FOR THE THREE MONTHS ENDED |
| CUSTOMERS |  | MARCH 31, 2020 |
1. | Regal Entertainment Group |  | 14.1% |
2. | Topgolf |  | 13.3% |
3. | AMC Theatres (1) |  | 13.3% |
4. | Cinemark |  | 6.9% |
5. | Vail Resorts |  | 4.5% |
6. | Basis Independent Schools |  | 3.6% |
7. | Camelback Resort |  | 3.4% |
8. | Premier Parks |  | 2.8% |
9. | VSS Southern |  | 2.7% |
10. | Six Flags |  | 2.7% |
| Total |  | 67.3% |

(1) During the three months ended March 31, 2020, the Company wrote-off $9.2 million of straight-line receivables to straight-line rental revenue classified in rental revenue in the consolidated statements of income.

Q1 2020 Supplemental | Page 22

DEFINITIONS - NON-GAAP FINANCIAL MEASURES

EBITDAre
The National Association of Real Estate Investment Trusts (“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, the Company calculates EBITDAre as net income, 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 (gain) 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. The Company's 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 the Company's operations or cash flows or liquidity as defined by GAAP.
ADJUSTED EBITDA AND ANNUALIZED ADJUSTED EBITDA
Management uses Adjusted EBITDA in its analysis of the performance of the business and operations of the Company. Management believes Adjusted EBITDA 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. The Company defines Adjusted EBITDA as EBITDAre (defined above) for the quarter excluding severance expense, credit loss expense, transaction costs and prepayment fees. This number for the quarter is then multiplied by four to get an annual amount. Annualized Adjusted EBITDA is Adjusted EBITDA for the quarter further adjusted for in-service and disposed projects, percentage rent and participating interest and other non-recurring items including removing any impact from operating properties, which is then multiplied by four to get an annual amount. For the three months ended March 31, 2020, Adjusted EBITDA was further adjusted to reflect the write-offs of straight line rent receivables against rental revenue of $12.5 million related to the impact of the COVID-19 disruption.
The Company's method of calculating Adjusted EBITDA and Annualized Adjusted EBITDA may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. Adjusted EBITDA and Annualized Adjusted EBITDA are not measures of performance under GAAP, do not represent cash generated from operations as defined by GAAP and are not indicative of cash available to fund all cash needs, including distributions. These measures should not be considered as an alternative to net income or any other GAAP measure as a measurement of the results of the Company's operations or cash flows or liquidity as defined by GAAP.
NET DEBT AND ADJUSTED 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 cash and cash equivalents, the result provides an estimate of the contractual amount of borrowed capital to be repaid, net of cash available to repay it. The Company believes this calculation constitutes a beneficial supplemental non-GAAP financial disclosure to investors in understanding its financial condition. Adjusted net debt is net debt less 40% times property under development to remove the estimated portion of property under development that has been financed with debt but has not yet produced earnings. The Company's method of calculating Net Debt and Adjusted Net Debt may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.
NET DEBT TO ADJUSTED EBIDTA AND ADJUSTED NET DEBT TO ANNUALIZED ADJUSTED EBITDA
Net Debt to Adjusted EBITDA and Adjusted Net Debt to Annualized Adjusted EBITDA are supplemental measures derived from non-GAAP financial measures that the Company uses to evaluate its capital structure and the magnitude of its debt against its operating performance. The Company believes that investors commonly

Q1 2020 Supplemental | Page 23

use versions of these ratios in a similar manner. In addition, financial institutions use versions of these ratios in connection with debt agreements to set pricing and covenant limitations. The Company's method of calculating both ratios may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.
NET OPERATING INCOME ("NOI")
NOI is a widely used financial measure in many industries, including the REIT industry, and is presented to assist investors and analysts in analyzing the performance of the Company. Management uses NOI in its analysis of the operations and valuation of the Company and believes it is useful to investors because it excludes various items included in net income that are not indicative of the operating performance of the Company's investments, such as gains (or losses) from sales of property, depreciation and amortization, and general and administrative expense, and is used in computing various financial ratios as a measure of operational performance. The Company computes NOI by adding back to Adjusted EBITDA - Continuing Operations the impact of general and administrative expense and corporate/unallocated and other.
FUNDS FROM OPERATIONS (“FFO”) AND FFO AS ADJUSTED
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 and management provides FFO herein because it believes this information is useful to investors in this regard. FFO is a widely used measure of the operating performance of real estate companies and is provided here as a supplemental measure to GAAP net income available to common shareholders and earnings per share. Pursuant to the definition of FFO by the Board of Governors of NAREIT, the Company calculates FFO as net income 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. The Company has calculated FFO for all periods presented in accordance with this definition. In addition, the Company presents FFO as adjusted. Management believes it is useful to provide FFO as adjusted as a supplemental measure to GAAP net income available to common shareholders and earnings per share. FFO as adjusted is FFO plus costs (gain) associated with loan refinancing or payoff, net, transaction costs, severance expense, preferred share redemption costs, termination fees associated with tenants' exercises of education properties buy-out options and credit loss expense, and by subtracting gain on early extinguishment of debt and deferred income tax benefit (expense). FFO and FFO as adjusted are non-GAAP financial measures. FFO and FFO as adjusted 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 an alternative to net income or any other GAAP measure as a measurement of the results of the Company's operations, cash flows or liquidity as defined by GAAP. It should also be noted that not all REITs calculate FFO and FFO as adjusted the same way so comparisons with other REITs may not be meaningful.
ADJUSTED FUNDS FROM OPERATIONS (“AFFO”)
In addition to FFO, the Company presents AFFO by adding to FFO costs (gain) associated with loan refinancing or payoff, net, transaction costs, credit loss expense, severance expense, preferred share redemption costs, termination fees associated with tenants' exercises of education properties buy-out options, non-real estate depreciation and 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 by subtracting gain on early extinguishment of debt, maintenance capital expenditures (including second generation tenant improvements and leasing commissions), straight-lined rental revenue, non-cash portion of mortgage and other financing income and deferred income tax (benefit) expense. AFFO is a widely used measure of the operating performance of real estate companies and is provided here as a supplemental measure to GAAP net income available to common shareholders and earnings per share and management provides AFFO herein because it believes this information is useful to investors in this regard. AFFO is a non-GAAP financial measure. AFFO does not represent cash flows from operations as defined by GAAP and is not indicative that cash flows are adequate to fund all cash needs and is not to be considered an alternative to net income or any other GAAP measure as a measurement of the results of the Company's operations or its cash flows or liquidity as defined by GAAP. It should also be noted that not all REITs calculate AFFO the same way so comparisons with other REITs may not be meaningful.

Q1 2020 Supplemental | Page 24

INTEREST COVERAGE RATIO
The interest coverage ratio is calculated as the interest coverage amount divided by interest expense, gross. The Company calculates the interest coverage amount by adding to net income impairment charges, credit loss expense, transaction costs, interest expense, gross (including interest expense in discontinued operations), severance expense, depreciation and amortization, share-based compensation expense to management and trustees and costs (gain) associated with loan refinancing or payoff, net; subtracting interest cost capitalized, straight-line rental revenue, gain on early extinguishment of debt, gain (loss) on sale of real estate from continuing and discontinued operations, gain on previously held equity interest, gain on early extinguishment of debt, prepayment fees and deferred income tax benefit (expense). The Company calculated interest expense, gross, by adding to interest expense, net, interest income and interest cost capitalized. The Company considers the interest coverage ratio to be an appropriate supplemental measure of a company’s ability to meet its interest expense obligations and management believes it is useful to investors in this regard. The Company's calculation of the interest coverage ratio may be different from the calculation used by other companies, and therefore, comparability may be limited. This information should not be considered as an alternative to any GAAP liquidity measures.
FIXED CHARGE COVERAGE RATIO
The fixed charge coverage ratio is calculated in exactly the same manner as the interest coverage ratio, except that interest expense, gross and preferred share dividends are also added to the denominator. The Company considers the fixed charge coverage ratio to be an appropriate supplemental measure of a company’s ability to make its interest and preferred share dividend payments and management believes it is useful to investors in this regard. The Company's calculation of the fixed charge coverage ratio may be different from the calculation used by other companies and, therefore, comparability may be limited. This information should not be considered as an alternative to any GAAP liquidity measures.
DEBT SERVICE COVERAGE RATIO
The debt service coverage ratio is calculated in exactly the same manner as the interest coverage ratio, except that interest expense, gross and recurring principal payments are also added to the denominator. The Company considers the debt service coverage ratio to be an appropriate supplemental measure of a company’s ability to make its debt service payments and management believes it is useful to investors in this regard. The Company's calculation of the debt service coverage ratio may be different from the calculation used by other companies and, therefore, comparability may be limited. This information should not be considered as an alternative to any GAAP liquidity measures.
ANNUALIZED ADJUSTED REVENUE
Annualized Adjusted Revenue is Total Revenue for the most recent quarter, excluding public charter school total revenue, other income primarily related to operating properties, and pass through revenues (lease and straight-line revenue on existing operating ground leases in which the Company is a sub-lessor and tenant reimbursements), further adjusted for in-service and disposed projects, percentage rent and participating interest and non-recurring adjustments. This number for the quarter is then multiplied by four to get an annual amount.

Q1 2020 Supplemental | Page 25

Appendix to Supplemental Operating and Financial Data
Reconciliation of Certain Non-GAAP Financial Measures
First Quarter Ended March 31, 2020

Q1 2020 Supplemental | Page 26

CALCULATION OF INTEREST, FIXED CHARGE AND DEBT SERVICE COVERAGE RATIOS
(UNAUDITED, DOLLARS IN THOUSANDS)
INTEREST COVERAGE RATIO (1): | 1ST QUARTER 2020 |  | 4TH QUARTER 2019 |  | 3RD QUARTER 2019 |  | 2ND QUARTER 2019 |  | 1ST QUARTER 2019 |  | 4TH QUARTER 2018
Net income | $ | 37,118 |  |  | $ | 36,297 |  |  | $ | 34,003 |  |  | $ | 66,594 |  |  | $ | 65,349 |  |  | $ | 54,031 |
Impairment charges | — |  |  | 23,639 |  |  | — |  |  | — |  |  | — |  |  | 10,735 |
Transaction costs | 1,075 |  |  | 5,784 |  |  | 5,959 |  |  | 6,923 |  |  | 5,123 |  |  | 1,583 |
Credit loss expense | 1,192 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Interest expense, gross | 36,794 |  |  | 36,442 |  |  | 37,575 |  |  | 37,999 |  |  | 37,138 |  |  | 36,304 |
Severance expense | — |  |  | 423 |  |  | 1,521 |  |  | — |  |  | 420 |  |  | 5,938 |
Depreciation and amortization | 43,810 |  |  | 44,530 |  |  | 45,134 |  |  | 42,355 |  |  | 39,743 |  |  | 39,541 |
Share-based compensation expense |  |  |  |  |  |  |  |  |  |  |
to management and trustees | 3,509 |  |  | 3,348 |  |  | 3,372 |  |  | 3,283 |  |  | 3,177 |  |  | 3,816 |
Costs associated with loan refinancing or payoff | — |  |  | 43 |  |  | 38,407 |  |  | — |  |  | — |  |  | — |
Interest cost capitalized | (262 | ) |  | (273 | ) |  | (386 | ) |  | (1,530 | ) |  | (3,137 | ) |  | (2,669 | )
Straight-line rental revenue | 9,708 |  |  | (3,516 | ) |  | (4,399 | ) |  | (3,223 | ) |  | (2,414 | ) |  | (3,216 | )
Gain on sale of real estate | (220 | ) |  | (5,648 | ) |  | (14,303 | ) |  | (9,774 | ) |  | (6,328 | ) |  | (349 | )
Prepayment fees | — |  |  | — |  |  | (1,760 | ) |  | — |  |  | (900 | ) |  | (7,391 | )
Deferred income tax benefit | (1,113 | ) |  | (847 | ) |  | (984 | ) |  | (1,675 | ) |  | (609 | ) |  | (182 | )
Interest coverage amount | $ | 131,611 |  |  | $ | 140,222 |  |  | $ | 144,139 |  |  | $ | 140,952 |  |  | $ | 137,562 |  |  | $ | 138,141 |
Interest expense, net | $ | 34,753 |  |  | $ | 34,907 |  |  | $ | 36,640 |  |  | $ | 36,278 |  |  | $ | 33,826 |  |  | $ | 33,515 |
Interest income | 1,779 |  |  | 1,262 |  |  | 549 |  |  | 191 |  |  | 175 |  |  | 120 |
Interest cost capitalized | 262 |  |  | 273 |  |  | 386 |  |  | 1,530 |  |  | 3,137 |  |  | 2,669 |
Interest expense, gross | $ | 36,794 |  |  | $ | 36,442 |  |  | $ | 37,575 |  |  | $ | 37,999 |  |  | $ | 37,138 |  |  | $ | 36,304 |
Interest coverage ratio | 3.6 |  |  | 3.8 |  |  | 3.8 |  |  | 3.7 |  |  | 3.7 |  |  | 3.8 |
FIXED CHARGE COVERAGE RATIO (1): |  |  |  |  |  |  |  |  |  |  |  |
Interest coverage amount | $ | 131,611 |  |  | $ | 140,222 |  |  | $ | 144,139 |  |  | $ | 140,952 |  |  | $ | 137,562 |  |  | $ | 138,141 |
Interest expense, gross | $ | 36,794 |  |  | $ | 36,442 |  |  | $ | 37,575 |  |  | $ | 37,999 |  |  | $ | 37,138 |  |  | $ | 36,304 |
Preferred share dividends | 6,034 |  |  | 6,034 |  |  | 6,034 |  |  | 6,034 |  |  | 6,034 |  |  | 6,034 |
Fixed charges | $ | 42,828 |  |  | $ | 42,476 |  |  | $ | 43,609 |  |  | $ | 44,033 |  |  | $ | 43,172 |  |  | $ | 42,338 |
Fixed charge coverage ratio | 3.1 |  |  | 3.3 |  |  | 3.3 |  |  | 3.2 |  |  | 3.2 |  |  | 3.3 |
DEBT SERVICE COVERAGE RATIO (1): |  |  |  |  |  |  |  |  |  |  |  |
Interest coverage amount | $ | 131,611 |  |  | $ | 140,222 |  |  | $ | 144,139 |  |  | $ | 140,952 |  |  | $ | 137,562 |  |  | $ | 138,141 |
Interest expense, gross | $ | 36,794 |  |  | $ | 36,442 |  |  | $ | 37,575 |  |  | $ | 37,999 |  |  | $ | 37,138 |  |  | $ | 36,304 |
Recurring principal payments | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Debt service | $ | 36,794 |  |  | $ | 36,442 |  |  | $ | 37,575 |  |  | $ | 37,999 |  |  | $ | 37,138 |  |  | $ | 36,304 |
Debt service coverage ratio | 3.6 |  |  | 3.8 |  |  | 3.8 |  |  | 3.7 |  |  | 3.7 |  |  | 3.8 |
(1) See pages 23 through 25 for definitions.
Amounts above include the impact of discontinued operations, which are separately classified in the consolidated statements of income.

Q1 2020 Supplemental | Page 27

RECONCILIATION OF INTEREST COVERAGE AMOUNT TO NET CASH PROVIDED BY OPERATING ACTIVITIES
(UNAUDITED, DOLLARS IN THOUSANDS)
The interest coverage amount per the table on page 27 is a non-GAAP financial measure and should not be considered an alternative to any GAAP liquidity measures. It is most directly comparable to the GAAP liquidity measure, “Net cash provided by operating activities,” and is not directly comparable to the GAAP liquidity measures, “Net cash used by investing activities” and “Net cash provided by financing activities.” The interest coverage amount can be reconciled to “Net cash provided by operating activities” per the consolidated statements of cash flows as follows:
|  | 1ST QUARTER 2020 |  | 4TH QUARTER 2019 |  | 3RD QUARTER 2019 |  | 2ND QUARTER 2019 |  | 1ST QUARTER 2019 |  | 4TH QUARTER 2018
Net cash provided by operating activities |  | $ | 89,044 |  |  | $ | 102,268 |  |  | $ | 127,506 |  |  | $ | 87,372 |  |  | $ | 122,384 |  |  | $ | 83,446 |
Equity in (loss) income from joint ventures |  | (420 | ) |  | (905 | ) |  | (435 | ) |  | 470 |  |  | 489 |  |  | (5 | )
Distributions from joint ventures |  | — |  |  | — |  |  | — |  |  | — |  |  | (112 | ) |  | — |
Amortization of deferred financing costs |  | (1,634 | ) |  | (1,621 | ) |  | (1,552 | ) |  | (1,517 | ) |  | (1,502 | ) |  | (1,490 | )
Amortization of above and below market leases, net and tenant allowances |  | 152 |  |  | 119 |  |  | 107 |  |  | 58 |  |  | 59 |  |  | 54 |
Changes in assets and liabilities, net: |  |  |  |  |  |  |  |  |  |  |  |
Amortization of operating lease assets and liabilities |  | (273 | ) |  | (161 | ) |  | (1,323 | ) |  | 735 |  |  | (445 | ) |  | — |
Mortgage notes and related accrued interest receivable |  | 512 |  |  | (8 | ) |  | (1,155 | ) |  | 1,409 |  |  | 135 |  |  | (453 | )
Accounts receivable |  | (14,149 | ) |  | 14,320 |  |  | (500 | ) |  | 2,234 |  |  | (14,669 | ) |  | 8,680 |
Direct financing lease receivable |  | — |  |  | 17 |  |  | 52 |  |  | 59 |  |  | 58 |  |  | 63 |
Other assets |  | 4,454 |  |  | (1,888 | ) |  | (2,245 | ) |  | (239 | ) |  | 5,673 |  |  | (1,662 | )
Accounts payable and accrued liabilities |  | 13,517 |  |  | (21,851 | ) |  | (5,639 | ) |  | 4,634 |  |  | (4,684 | ) |  | 6,265 |
Unearned rents and interest |  | (6,907 | ) |  | 11,132 |  |  | (8,769 | ) |  | 5,568 |  |  | (5,951 | ) |  | 15,912 |
Straight-line rental revenue |  | 9,708 |  |  | (3,516 | ) |  | (4,399 | ) |  | (3,223 | ) |  | (2,414 | ) |  | (3,216 | )
Interest expense, gross |  | 36,794 |  |  | 36,442 |  |  | 37,575 |  |  | 37,999 |  |  | 37,138 |  |  | 36,304 |
Interest cost capitalized |  | (262 | ) |  | (273 | ) |  | (386 | ) |  | (1,530 | ) |  | (3,137 | ) |  | (2,669 | )
Transaction costs |  | 1,075 |  |  | 5,784 |  |  | 5,959 |  |  | 6,923 |  |  | 5,123 |  |  | 1,583 |
Severance expense (cash portion) |  | — |  |  | 363 |  |  | 1,103 |  |  | — |  |  | 317 |  |  | 2,720 |
Prepayment fees |  | — |  |  | — |  |  | (1,760 | ) |  | — |  |  | (900 | ) |  | (7,391 | )
Interest coverage amount (1) |  | $ | 131,611 |  |  | $ | 140,222 |  |  | $ | 144,139 |  |  | $ | 140,952 |  |  | $ | 137,562 |  |  | $ | 138,141 |
Net cash (used) provided by investing activities |  | $ | (39,759 | ) |  | $ | 381,255 |  |  | $ | 176,446 |  |  | $ | (333,363 | ) |  | $ | (127,833 | ) |  | $ | (104,684 | )
Net cash provided (used) by financing activities |  | $ | 649,237 |  |  | $ | (73,886 | ) |  | $ | (194,098 | ) |  | $ | 235,607 |  |  | $ | 9,154 |  |  | $ | (56,075 | )
(1) See pages 23 through 25 for definitions.

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RECONCILIATION OF EBITDAre, ADJUSTED EBITDA, ANNUALIZED ADJUSTED EBITDA AND ANNUALIZED ADJUSTED REVENUE
(UNAUDITED, DOLLARS IN THOUSANDS)
ADJUSTED EBITDA (2): |  | 1ST QUARTER 2020 |  | 4TH QUARTER 2019 |  | 3RD QUARTER 2019 |  | 2ND QUARTER 2019 |  | 1ST QUARTER 2019 |  | 4TH QUARTER 2018
Net income |  | $ | 37,118 |  |  | $ | 36,297 |  |  | $ | 34,003 |  |  | $ | 66,594 |  |  | $ | 65,349 |  |  | $ | 54,031 |
Interest expense, net |  | 34,753 |  |  | 34,907 |  |  | 36,640 |  |  | 36,278 |  |  | 33,826 |  |  | 33,515 |
Income tax (benefit) expense |  | (751 | ) |  | (530 | ) |  | (600 | ) |  | (1,300 | ) |  | (605 | ) |  | 108 |
Depreciation and amortization |  | 43,810 |  |  | 44,530 |  |  | 45,134 |  |  | 42,355 |  |  | 39,743 |  |  | 39,541 |
Gain on sale of real estate |  | (220 | ) |  | (5,648 | ) |  | (14,303 | ) |  | (9,774 | ) |  | (6,328 | ) |  | (349 | )
Impairment charges |  | — |  |  | 23,639 |  |  | — |  |  | — |  |  | — |  |  | 10,735 |
Costs associated with loan refinancing or payoff |  | — |  |  | 43 |  |  | 38,407 |  |  | — |  |  | — |  |  | — |
Equity in loss (income) from joint ventures |  | 420 |  |  | 905 |  |  | 435 |  |  | (470 | ) |  | (489 | ) |  | 5 |
EBITDAre |  | $ | 115,130 |  |  | $ | 134,143 |  |  | $ | 139,716 |  |  | $ | 133,683 |  |  | $ | 131,496 |  |  | $ | 137,586 |
Severance expense |  | — |  |  | 423 |  |  | 1,521 |  |  | — |  |  | 420 |  |  | 5,938 |
Transaction costs |  | 1,075 |  |  | 5,784 |  |  | 5,959 |  |  | 6,923 |  |  | 5,123 |  |  | 1,583 |
Credit loss expense |  | 1,192 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Straight-line rental revenue write-offs (1) |  | 12,532 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Prepayment fees |  | — |  |  | — |  |  | (1,760 | ) |  | — |  |  | (900 | ) |  | (7,391 | )
Adjusted EBITDA (for the quarter) |  | $ | 129,929 |  |  | $ | 140,350 |  |  | $ | 145,436 |  |  | $ | 140,606 |  |  | $ | 136,139 |  |  | $ | 137,716 |
Adjusted EBITDA (3) |  | $ | 519,716 |  |  | $ | 561,400 |  |  | $ | 581,744 |  |  | $ | 562,424 |  |  | $ | 544,556 |  |  | $ | 550,864 |
ANNUALIZED ADJUSTED EBITDA (2): |  |  |  |  |  |  |  |  |  |  |  |
Adjusted EBITDA (for the quarter) |  | $ | 129,929 |  |  | $ | 140,350 |  |  | $ | 145,436 |  |  | $ | 140,606 |  |  | $ | 136,139 |  |  | $ | 137,716 |
Corporate/unallocated and other NOI |  | (145 | ) |  | 403 |  |  | (2,173 | ) |  | (1,855 | ) |  | (1,925 | ) |  | (1,530 | )
In-service and disposition adjustments (4) |  | 1,351 |  |  | (4,580 | ) |  | 528 |  |  | 5,591 |  |  | 252 |  |  | 243 |
Percentage rent/participation adjustments (5) |  | 979 |  |  | (2,947 | ) |  | 206 |  |  | (856 | ) |  | 1,335 |  |  | (2,339 | )
Non-recurring adjustments (6) |  | 3,999 |  |  | 1,170 |  |  | 213 |  |  | 2,668 |  |  | (72 | ) |  | (240 | )
Annualized Adjusted EBITDA (for the quarter) |  | $ | 136,113 |  |  | $ | 134,396 |  |  | $ | 144,210 |  |  | $ | 146,154 |  |  | $ | 135,729 |  |  | $ | 133,850 |
Annualized Adjusted EBITDA (7) |  | $ | 544,452 |  |  | $ | 537,584 |  |  | $ | 576,840 |  |  | $ | 584,616 |  |  | $ | 542,916 |  |  | $ | 535,400 |
ANNUALIZED ADJUSTED REVENUE (1): |  |  |  |  |  |  |  |  |  |  |  |
Total revenue (for the quarter) |  | $ | 151,012 |  |  | $ | 177,440 |  |  |  |  |  |  |  |  |
Other income |  | (7,573 | ) |  | (8,386 | ) |  |  |  |  |  |  |  |
Pass-through revenues |  | (9,694 | ) |  | (11,793 | ) |  |  |  |  |  |  |  |
In-service and disposition adjustments (4) |  | 456 |  |  | (6,168 | ) |  |  |  |  |  |  |  |
Straight-line rental revenue write-offs (1) |  | 12,532 |  |  | — |  |  |  |  |  |  |  |  |
Percentage rent/participation adjustments (5) |  | 979 |  |  | (2,947 | ) |  |  |  |  |  |  |  |
Non-recurring adjustments (6) |  | 1,670 |  |  | (423 | ) |  |  |  |  |  |  |  |
Annualized Adjusted Revenue (for the quarter) |  | $ | 149,382 |  |  | $ | 147,723 |  |  |  |  |  |  |  |  |
Annualized Adjusted Revenue (8) |  | $ | 597,528 |  |  | $ | 590,892 |  |  |  |  |  |  |  |  |
See footnotes on following page. |  |  |  |  |  |  |  |  |  |  |  |

Q1 2020 Supplemental | Page 29

(1) Included in rental revenue from continuing operations in the consolidated statements of income in the Company's Annual Reports on Form 10-K and the Company's Quarterly Reports on Form 10-Q. Reconciliation is as follows:
Minimum rent |  | $ | 138,219 |  |  | $ | 139,529 |  |  | $ | 139,844 |  |  | $ | 134,409 |  |  | $ | 130,497 |  |  | $ | 122,489 |
Tenant reimbursements |  | 3,698 |  |  | 5,790 |  |  | 5,129 |  |  | 5,843 |  |  | 6,102 |  |  | 3,933 |
Percentage rent |  | 2,757 |  |  | 6,428 |  |  | 3,032 |  |  | 4,147 |  |  | 1,355 |  |  | 5,006 |
Straight-line rental revenue |  | 2,824 |  |  | 2,926 |  |  | 2,866 |  |  | 2,520 |  |  | 2,245 |  |  | 1,977 |
Straight-line rental revenue write-offs |  | (12,532 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other rental revenue |  | 77 |  |  | 92 |  |  | 91 |  |  | 84 |  |  | 93 |  |  | 86 |
Rental revenue |  | $ | 135,043 |  |  | $ | 154,765 |  |  | $ | 150,962 |  |  | $ | 147,003 |  |  | $ | 140,292 |  |  | $ | 133,491 |
(2) See pages 23 through 25 for definitions.
(3) Adjusted EBITDA for the quarter is multiplied by four to calculate an annual amount.
(4) Adjustments for properties commencing or terminating GAAP net operating income during the quarter and adjustments to revenue from mortgage notes receivable to be consistent with end of quarter balance, for continuing properties only.
(5) To adjust percentage rents and participating interest income from the actual latest quarterly amount to the trailing 12 month amount divided by 4.
(6) Non-recurring adjustments relate to properties under operating agreements with third parties, as applicable, and COVID-19 related adjustments.
(7) Annualized Adjusted EBITDA for the quarter is multiplied by four to calculate an annual amount.
(8) Annualized Adjusted Revenue for the quarter is multiplied by four to calculate an annual amount.
Amounts above include the impact of discontinued operations, which are separately classified in the consolidated statements of income.

Q1 2020 Supplemental | Page 30