EPR Properties

Good day and thank you for standing by. Welcome to the Quarter 4 EPR Properties 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. To ask a question during the session, you'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Brian Moriarty. Please go ahead.

Thank you, Chris. Thanks for joining us today for our fourth quarter and year-end 2022 earnings call and webcast. Participants on today's call are Greg Silvers, Chairman and CEO, Greg Zimmerman, Executive Vice President and CIO, and Mark Peterson, Executive Vice President and CFO. We'll start the call by informing you that this call may include forward-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. The company's actual financial condition and the results of operations may vary materially from those contemplated by such forward-looking statements. Discussion of those factors that could cause results to differ materially from those forward-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. A 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 8-K. If you wish to follow along, today's earnings release, supplemental, and earnings call presentation are available on the Investor Center page of the company's website, www.eprkc.com. Now I'll turn the call over to Greg Silvers.

Thank you, Brian. Good morning, everyone, and thank you for joining us on today's fourth quarter and year-end 2022 earnings call-in webcast. For the full year, we delivered 52% per share growth in FFO as adjusted, demonstrating our continuing recovery and the resilience of our experiential investments. This resilience is also reflected in our improving theater rent coverage levels and the continued strength of our non-theater rent coverage. Even against a backdrop of recession fears, the consumer continues to support our affordable drive-to experiential properties. We are also pleased that in the fourth quarter and through February 2023, we have received all scheduled rent and deferral payments from Regal as we are working through the process toward a resolution. Our tenant industries continue to demonstrate healthy momentum. This is particularly evident at the box office, which was up by more than 64% in 2022. Sustained wide release content continues to be the key ingredient for success. As the number of wide release films have grown, ticket sales have grown, and major studios have reasserted their focus on theatrical releases. During the year, we also resumed our investment spending. deploying capital in a disciplined manner across a variety of experiential properties. After pausing our investment spending for nearly two years during the pandemic, our efforts in 2022 validate our ability to identify, underwrite, and close quality transactions in the experiential space. For the year, we closed transactions valued at over 600 million, with over 400 million being deployed in 2022 and the balance being deployed in 2023 and 2024. We are able to fund these commitments without raising additional capital, and the average cap rate on these investments was over 8%. As we've stated in the past, the vast majority of our investments come through our network of tenants and partners. Our depth and breadth of knowledge in the experiential real estate investing is unmatched among REITs. In 2022, this was evidenced by our expansion in the burgeoning areas of fitness and wellness, such as the community of climbing gyms, new wellness opportunities and the time-tested experience of natural hot spring spas, and our new partnership with Colorado-based Gravity House. In 2023, we expect to continue expanding our experiential portfolio with select investments in properties consistent with our growth strategy. Our growth pipeline remains robust as new and existing concepts and clients continue to grow to meet the demands of their experience-focused customers. Our challenge remains not one of opportunity, rather that our cost of capital has not recovered as quickly as our properties. We will, however, remain steadfast in our disciplined approach, focusing on the highest quality and the best risk-to-reward investments. At this time, we aren't providing earnings guidance due to the uncertainty of Regal's bankruptcy proceeding. However, we remain confident in our outlook and are maintaining our well-covered monthly dividend to common shareholders at its current level. While we still have work to do to regain our full momentum, we are heartened by our significant progress, and we remain resolute and confident in the quality of our properties. Lastly, I'm pleased to welcome John Case to our Board of Trustees. John brings a wealth of knowledge and experience in net lease real estate, and we are excited to benefit from his expertise as we continue to grow and expand our portfolio of experiential assets. Now I'll turn the call over to Greg Zimmerman, who will cover our business in greater detail.