KANSAS CITY, Mo.--(BUSINESS WIRE)--March 1, 2005--Entertainment
Properties Trust (NYSE:EPR) today announced operating results for the
fourth quarter and year ended December 31, 2004. The Company reported
record fourth quarter and total year revenues, net income and funds
from operations (FFO).
Total revenues increased 32% to $33.3 million for the fourth
quarter as compared to $25.2 million for the same quarter in 2003.
Total revenues for the year ended December 31, 2004, increased 37% to
$125.0 million compared to $91.2 million for the same period in 2003.
Net income available to common shareholders for the fourth quarter
increased 54% to $13.9 million as compared to $9.1 million in the same
quarter last year. Net income on a diluted per share basis increased
20% to $0.55 per share from $0.46 per share in the same quarter last
year. Net income available to common shareholders for the year ended
December 31, 2004, increased 50% to $48.3 million as compared to $32.1
million for the same period in 2003. Net income on a diluted per share
basis increased 17% to $2.07 for the year ended December 31, 2004,
compared to $1.77 for the same period in 2003.
Funds from operations (FFO) on a diluted basis increased 41% to
$20.0 million from $14.2 million for the same quarter last year. On a
diluted basis, FFO per share increased 16% to $0.79 per share from
$0.68 per share for the same quarter last year. FFO for the year ended
December 31, 2004, increased 43% to $71.6 million from $49.9 million
for the same period last year. On a diluted basis, FFO per share
increased 16% to $3.03 per share for the year ended December 31, 2004,
compared to $2.62 per share for the same period in 2003.
Portfolio Highlights
As of December 31, 2004, our portfolio of 57 state-of-the-art
megaplex theatre properties was 100% occupied with an average weighted
remaining base term lease life of 13.2 years. Our theatre property
portfolio consisted of approximately 5.2 million square feet with
1,191 screens and over 238,000 seats. Our non-theatre real estate
portfolio consisted of 1.3 million square feet of restaurant and
retail space. The Company's real estate holdings are located in 22
states and Canada. For the year ended December 2004, the Company
completed real estate acquisitions and development totaling $296
million comprised of 12 theatre properties, other complimentary retail
property and properties currently under development scheduled to open
in 2005.
Earnings Guidance
The Company is providing 2005 FFO guidance in the range of $3.33
to $3.41 per diluted share. The 2005 guidance assumes net real estate
investments of approximately $130 million. The Company intends to
complete the acquisitions using proceeds available under the Company's
credit facility and from long-term mortgage debt markets.
ENTERTAINMENT PROPERTIES TRUST
Financial Data
(in thousands except per share data)
(Unaudited)
Three months ended Twelve months ended
December 31, December 31,
2004 2003 2004 2003
---- ---- ---- ----
Rental revenue $33,151 $25,157 $124,423 $89,965
Other revenue 163 - 557 1,195
------- ------- ------- -------
Total revenue 33,314 25,157 124,980 91,160
Property operating expense,
net 732 300 2,322 698
General and administrative
expense, excluding
amortization of non-vested
shares below 1,031 924 4,716 3,859
Costs associated with loan
refinancing - - 1,134 -
Interest expense, net 9,753 8,207 38,054 30,570
Depreciation and
amortization 6,329 4,729 23,365 16,359
Amortization of non-vested
shares 356 231 1,377 926
------- ------- ------- -------
Income before income
from joint ventures,
and minority interests 15,113 10,766 54,012 38,748
Equity in income from joint
ventures 172 102 654 401
Minority interests 29 (430) (953) (1,555)
------- ------- ------- -------
Net income $15,314 $10,438 $53,713 $37,594
Preferred dividend
requirements (1,366) (1,366) (5,463) (5,463)
------- ------- ------- -------
Net income available to
common shareholders $13,948 $9,072 $48,250 $32,131
======= ======= ======= =======
Basic net income per
common share $0.56 $0.46 $2.12 $1.81
Diluted net income per
common share $0.55 $0.46 $2.07 $1.77
ENTERTAINMENT PROPERTIES TRUST
Reconciliation of Net Income Available to Common Shareholders to
Funds From Operations (A)
(in thousands except per share data)
Three months ended Twelve months ended
December 31, December 31,
FUNDS FROM OPERATIONS: 2004 2003 2004 2003
---- ---- ---- ----
Net income available to
common shareholders $13,948 $9,072 $48,250 $32,131
Add: Real estate
depreciation 6,032 4,678 22,379 16,175
Add: Share of joint venture
depreciation 60 32 223 135
------- ------- ------- -------
Basic funds from
operations $20,040 $13,782 $70,852 $48,441
------- ------- ------- -------
Add: minority interest in
net income - 375 750 1,500
------- ------- ------- -------
Diluted funds from
operations $20,040 $14,157 $71,602 $49,941
======= ======= ======= =======
FFO per common share:
Basic $0.81 $0.71 $3.12 $2.72
Diluted $0.79 $0.68 $3.03 $2.62
Shares used for computation
(in thousands):
Basic 24,876 19,532 22,721 17,780
Diluted 25,444 20,802 23,664 19,051
(A) The National Association of Real Estate Investment Trusts (NAREIT)
developed FFO as a relative non-GAAP financial measure of performance
and liquidity of an equity REIT in order to recognize that
income-producing real estate historically has not depreciated on the
basis determined under GAAP. 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 earnings per
share. FFO, as defined under the revised NAREIT definition and
presented by us, is net income, computed in accordance with GAAP,
excluding gains and losses from sales of depreciable operating
properties, 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. FFO is a non-GAAP financial measure. 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
Condensed Consolidated Balance Sheets
(in thousands)
As of As of
December 31, December 31,
2004 2003
---- ----
Assets:
Rental properties, net $1,121,409 $870,944
Land held for development 23,144 29,152
Investment in joint ventures 2,541 1,336
Cash and cash equivalents 11,255 30,527
Restricted cash 12,794 6,495
Intangible assets, net 10,900 693
Deferred financing costs, net 12,730 11,405
Other assets 18,675 15,366
--------- ---------
Total assets $1,213,448 $965,918
========= =========
Liabilities and Shareholders' Equity:
Common dividends payable $14,097 $9,829
Preferred dividends payable 1,366 1,366
Unearned rents 1,634 895
Other liabilities 10,070 2,864
Long term debt 592,892 506,555
--------- ---------
Total liabilities 620,059 521,509
Minority interests 6,049 21,630
Shareholders' equity 587,340 422,779
--------- ---------
Total liabilities and shareholders'
equity $1,213,448 $965,918
========= =========
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 $1.2 billion 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, 2004.
CONTACT: Entertainment Properties TrustJon Weis, 888-EPR-REIT
816-472-5794 (fax)
www.eprkc.com
SOURCE: Entertainment Properties Trust