Q1 2023 EPR Properties Earnings Call
Speaker 1: Good day and thank you for standing by. Welcome to the EPR properties first quarter 2023 earnings conference call. At this time all participants are in a listen only mode. After the speaker's presentation there will be a question and answer session.
Speaker 1: To ask a question during the session, you will need to press star 1-1 on your telephone. You'll then hear an automated message advising you that your hand is raised. To withdraw your question, simply press star 1-1 again.
Speaker 1: Please be advised that today's conference is being recorded. And without further ado, I would like to now hand the conference over to your first speaker today, Brian Moriarty, Vice President, Corporate Communications. Brian , please go ahead.
Speaker 2: Okay, thank you Eric. Thanks for joining us today for our first quarter, 2023, earnings call and webcast. Participants on today's call are Greg Silver's Chairman and CEO , Greg Zimmerman, Executive Vice President and CIO, and Mark Peterson Executive Vice President and CFO .
Speaker 2: We'll start the call by informing you that this call may include four looking statements as defined in 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.
Speaker 2: The company's actual financial condition and the results of operations may vary materially from those contemplated by such forward-looking statements.
Speaker 2: Discussion of those factors that could cause results to differ materially from those four looking statements are contained in the company's SEC filings, including the company's reports on Form 10-K and 10-Q. Additionally, this call will contain references to certain non-GAAP measures, which we believe are useful in evaluating the company's performance.
Speaker 2: Reconciliation of these measures to the most directly comparable GAAP measures are included in today's earnings release and supplemental information furnished to the SEC under Form 8K. If you wish to follow along, today's earnings release, supplemental and earnings call presentation are all available on the Investor Center page of the company's website.
Speaker 1: by 9% growth in total revenue and 15% growth in FFOAA per share versus the same quarter prior year.
Speaker 1: We have also collected all scheduled rent from June of 2023 through April , as well as the scheduled deferral payments due from all customers for the same period.
Speaker 1: These results provide further evidence of our theme of recovery and highlight the resilience of our experiential investments. Additionally, during the month of April , Cineworld reported that it had entered into a restructuring support agreement with its secured lenders and subsequently filed a plan of reorganization. The proposed timeframe within the plan indicates that Cineworld should emerge from bankruptcy in early 2021.
Speaker 1: the significant news of both Amazon and Apple committing to spend $1 billion a year toward movies with theatrical releases.
Speaker 1: As we stated many times, this firmly speaks to the importance of theatrical distribution in maximizing economics and building brands.
Speaker 1: In reviewing our experiential portfolio, we're seeing sustained demand highlighted by our Eat and Play experiential lodging and ski properties. Additionally, we're pleased to see our overall rent coverage continues to remain above 2019 levels.
Speaker 1: Our strong liquidity position allows us to deploy capital in a disciplined manner across a variety of experiential properties, including having a committed pipeline that we will fund in the coming quarters.
Speaker 1: With a durable income stream, an ongoing recovery, and additional growth from our investment pipeline, we are encouraged by our outlook for the year. Now I'll turn the call over to Greg Zimmerman to review the business in more detail.
Speaker 1: Thanks, Greg. At year end, our total investments were approximately $6.7 billion, with 363 properties in service and 98% leased.
Speaker 1: During the quarter, our investment spending was $66.5 million. 100% of the spending was on our experiential portfolio and included the acquisition of an experiential property and continued funding for experiential development and redevelopment projects commenced in 2022.
Speaker 1: Our experiential portfolio comprises 289 properties with 49 operators and accounts for 92% of our total investments or approximately $6.2 billion, and at the end of the quarter was 98% occupied.
Speaker 1: Our education portfolio comprises 74 properties with 8 operators and at the end of the quarter was 100% occupied.
Speaker 1: Our value-oriented drive-to destinations provide a compelling value proposition for families, and we are confident they will continue to prove resilient.
Speaker 1: Turning to coverage, the most recent data provided is based on a December trailing 12-month period. Overall portfolio coverage for the trailing 12 months continues to be strong at two times.
Speaker 1: at $7.4 billion.
Speaker 1: Now I'll update you on the operating status of our tenants.
Speaker 1: The first quarter was a continuation of box office recovery and acceleration.
Speaker 1: Q1 total box office was 1.7 billion, a 28% increase over Q1 2022 led by Avatar the Way of Water, Ant-Man and the Wasp, Quantumanium, Kree 3, and Puss in Boots, The Last Wish.
Speaker 1: The quarter also had the breakout titles John Wick Chapter 4 and Cocaine Bear. We were pleased with the performance of the children's offering Puss in Boots and the adult-oriented Tom Hanks film A Man Called Otto. Eleven films grossed over $50 million in the quarter.
Speaker 1: Led by the outstanding performance of the Super Mario Brothers movie, Q2 is off to a robust start. At 146.4 million, Super Mario Brothers generated the second highest grossing opening weekend ever for an animated feature film, which in turn fueled the biggest five-day opening ever for any film at 204.6 million.