Form: 8-K

Current report

May 12, 2003

Documents

PRESS RELEASE

Published on May 12, 2003

ENTERTAINMENT PROPERTIES TRUST REPORTS FIRST QUARTER 2003 RESULTS
AND REAFFIRMS EARNINGS GUIDANCE

Kansas City, MO, May 7, 2003, -- Entertainment Properties Trust (NYSE:EPR),
today reported operating results for the first quarter ended March 31, 2003. All
per share results are reported on a fully diluted basis.

Total revenues increased 33% to $21.0 million for the quarter compared to $15.8
million for the same quarter of 2002. Net income available to common
shareholders for the first quarter increased 6% to $7.3 million as compared to
$6.9 million for the same quarter last year. Net income available to common
shareholders on a diluted per share basis was $0.42 per share in the current
quarter and $0.42 per share in the same quarter last year.

Funds from operations (FFO) on a diluted basis increased 16% to $11.3 million as
compared to $9.8 million for the same quarter of 2002. FFO per diluted common
share was $0.62 for the quarter compared to $0.60 for the same quarter last
year. Funds from operations is a widely used measure of the operating
performance of real estate companies and is provided here as a supplemental
measure to Generally Accepted Accounting Principles (GAAP) net income available
to common shareholders and earning per share. A reconciliation of net income
available to common shareholders to FFO is provided in the financial statement
section of this press release. The Company calculates FFO in accordance with the
definition adopted by The National Association of Real Estate Investment Trusts
(NAREIT).

"We are pleased to report our continued earnings growth based on the strength
and positive fundamentals in our portfolio. The achievements and results of the
first quarter are consistent with our program for the year and our expectations"
said David Brain, Chief Executive Officer.

Consistent with the Securities and Exchange Commission's Regulation FD,
Entertainment Properties Trust publicly comments on earnings expectations from
time to time within the context of its regular earnings press releases.
Management affirms its previous expectations for funds from operations (FFO),
which on a fully diluted common share for 2003 should range from $2.60 to $2.70
per share. Achievement of those expectations would represent an increase of 10%
to 14% compared to 2002 FFO of $2.37 per diluted common share.

As previously announced, the Company's Board of Trustees declared a regular
quarterly cash dividend of $0.50 per common share for the first quarter, which
was paid on April 15, 2003. The first quarter cash dividend represents an
annualized dividend amount of $2.00 per common share as compared to $1.90 for
the prior year. The Company also declared and paid a first quarter cash dividend
of $0.59375 on the 9.5% Series A Preferred Shares.

As previously announced on February 28, 2003, a subsidiary of Entertainment
Properties issued $155.5 million of Commercial Mortgage Pass-Through
Certificates, Series 2003, issued in seven classes. The certificates represent a
ten-year fixed rate loan with an average weighted interest rate of approximately
5.7% and are secured by 15 megaplex theatre properties located in California,
Kansas, Louisiana, Florida, North Carolina, South Carolina, Virginia, Michigan,
Illinois and Nebraska. Goldman Sachs was the lead manager on this transaction
and Credit Suisse First Boston was the co-manager.

ENTERTAINMENT PROPERTIES TRUST
Unaudited Financial Data
(in thousands except per share data)





Three Months ended March 31,
2003 2002
----------- -----------
Rental revenue $ 20,458 $ 15,796
Other Income 587 -
----------- -----------
Total Revenue 21,045 15,796

Property operating expense 95 71
General and administrative expense, excluding amortization of
non-vested shares below 856 522
Interest expense 7,234 5,733
Depreciation and amortization 3,687 2,748
Amortization of non-vested shares 231 150
----------- -----------
Income before minority interest and income from joint venture 8,942 6,572
Equity in income from joint venture 91 375
Minority interest (375) (70)
----------- -----------
Net income $ 8,658 $ 6,877

Preferred dividend requirements (1,366) -
----------- -----------
Net income available to common shareholders $ 7,292 $ 6,877
=========== ===========

Net income per common share: Basic $ 0.43 $ 0.43
Diluted $ 0.42 $ 0.42

Shares used for computation (in thousands): Basic 17,128 16,119
Diluted 18,274 16,396






ENTERTAINMENT PROPERTIES TRUST
Reconciliation of Net Income Available to Common Shareholders
to Funds From Operations (A)
(in thousands except per share data)





March 31, 2003 March 31, 2002
-------------- --------------
Funds From Operations (FFO)
Net income available to common shareholders $ 7,292 $ 6,877
Add: Real estate depreciation 3,641 2,732
Add: Allocated share of joint venture depreciation 32 139
-------------- --------------
Basic Funds From Operations 10,965 9,748

Add: Minority interest in net income 375 70
-------------- --------------
Diluted Funds From Operations $ 11,340 $ 9,818
============== ==============

FFO per common share: Basic $ 0.64 $ 0.60
Diluted $ 0.62 $ 0.60

Shares used for computation (in thousands): Basic 17,128 16,119
Diluted 18,274 16,396




(A) Funds from operations (FFO) is a widely used measure of the operating
performance of real estate companies and is provided here as a supplemental
measure to Generally Accepted Accounting Principles (GAAP) net income available
to common shareholders and earning per share. FFO is defined as net income
(computed in accordance with GAAP), excluding gains and losses from sales of
depreciable operating properties, plus 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. FFO 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 the Company's cash flows or liquidity as
defined by GAAP.


ENTERTAINMENT PROPERTIES TRUST
Consolidated Balance Sheets
(in thousands)




March 31, 2003 December 31, 2002
---------------- -------------------
Assets (Unaudited)
Rental properties, net $ 688,477 $ 679,937
Land held for development 12,395 12,985
Investment in joint venture 1,085 1,109
Cash and cash equivalents 82,767 10,091
Restricted cash 6,495 6,495
Receivable from joint venture - 8,438
Other assets 17,367 11,332
----------- -----------
Total assets $ 808,586 $ 730,387
=========== ===========

Liabilities and Shareholders' Equity
Accounts payable and accrued liabilities $ 1,782 $ 1,653
Common dividend payable 8,622 8,162
Preferred dividend payable 1,366 1,366
Unearned rents 226 4,036
Long-term debt 429,380 346,617
----------- -----------
Total liabilities 441,376 361,834

Commitments and contingencies - -
Minority interest in consolidated subsidiary 15,000 15,375

Shareholders' equity:
Common Shares, $.01 par value; 50,000,000 shares authorized; 17,715,476 and
17,655,822 shares issued at March 31, 2003 and
December 31, 2002, respectively 177 177
Preferred Shares, $.01 par value; 5,000,000 shares authorized;
2,300,000 shares issued at March 31, 2003 and December 31, 2002 23 23
Additional paid-in-capital 380,880 379,447
Treasury shares at cost: 472,200 common shares at March 31, 2003 and December 31, (6,533) (6,533)
2002
Loans to shareholders (3,525) (3,525)
Non-vested shares (2,319) (1,276)
Distributions in excess of net income (16,493) (15,135)
----------- -----------
Shareholders' equity 352,210 353,178
----------- -----------
Total liabilities and shareholders' equity $ 808,586 $ 730,387
=========== ===========





About Entertainment Properties Trust


Entertainment Properties Trust is the only publicly traded real estate
investment trust (REIT) focused on the acquisition of high-quality real estate
assets leased to leading location-based entertainment operators. Since November
of 1997, EPR has acquired more than $700 million of properties. The Company's
common shares of beneficial interest trade on the New York Stock Exchange under
the ticker symbol EPR. Entertainment Properties Trust Company contact: Jon Weis,
30 Pershing Road, Suite 201, Kansas City, Missouri 64108; 888/EPR-REIT; fax:
816/472-5794. The Company website is at www.eprkc.com.


Safe Harbor Statement: This press release includes forward-looking statements as
defined in the Private Securities Litigation Reform 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, results of operations and funds from operations may vary materially
from those contemplated by such forward-looking statements. A discussion of the
factors that could cause actual results to differ materially from those
forward-looking statements is contained in the Company's SEC filings, including
the company's annual report on Form 10-K for the year ended December 31, 2002.