Benzinga | Jan 7, 2021 04:18PM EST

EPR Properties Says In Q4 Collected ~46% Of Pre-COVID Cash Revenue

EPR Properties (NYSE:EPR) today provided key business updates for the fourth quarter ended December 31, 2020, including increased quarterly cash collection levels and the sale of a portfolio of education properties.

Cash Collections

For the fourth quarter of 2020 the Company collected approximately 46% of pre-COVID contractual cash revenue. This cash collection level is consistent with the Company's estimated cash collection range previously provided and compares favorably to previous 2020 quarters as second quarter was originally reported at 24% (now adjusted with additional collections to 28%), and third quarter was originally reported at 41% (now adjusted with additional collections to 42%). Additionally, the fourth quarter cash collections of approximately 46% combined with the debt pay-down discussed below, achieves the level which allows the Company to be cash flow positive.

Property Openings

Our properties continue to be subject to state and local governmental restrictions. As of December 31, 2020, approximately 92% of the Company's non-theatre properties are open and 58% of theatre properties are open, excluding normal seasonal closings.

Capital Recycling

On December 29, 2020, pursuant to a tenant purchase option, the Company completed the sale of six private schools and four early childhood education centers for net proceeds totaling approximately $201 million and expects to recognize a gain on sale of approximately $40 million. Additionally, during the fourth quarter of 2020, the Company completed the sale of four experiential properties and two land parcels for net proceeds totaling approximately $23 million and expects to recognize a gain on sale of approximately $10 million. For the fourth quarter, disposition proceeds totaled approximately $224 million.

The Company used a portion of the disposition proceeds to pay-down its revolving credit facility by $160 million on December 30, 2020 and expects to pay-down an additional $46 million either on its private placement notes or its revolving credit facility on January 19, 2021 in accordance with the Third Amendment to its Private Placement Note Purchase Agreement.