Company: EPR-PE
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001045450-25-000082
Chunk: 31

Company: EPR PROPERTIES
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 value at the reporting date. The Company assessed the fair value of the collateral as of March 31, 2025 on the mortgage note receivable and the note receivable. The mortgage note receivable has a carrying amount at March 31, 2025 of approximately $10.4 million net of an allowance for credit loss totaling $0.4 million. The one 

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note receivable remains fully reserved with an allowance for credit loss totaling $6.9 million, which represents the outstanding principal balance of the note as of March 31, 2025. Income from these borrowers is recognized on a cash basis. During the three months ended March 31, 2025 and 2024, the Company received cash basis interest payments of $0.3 million and $0.2 million, respectively, from the mortgage note receivable borrower. At March 31, 2025, the Company's investment in one of the notes receivable was a variable interest investment and the underlying entity is a VIE. The Company is not the primary beneficiary of this VIE because the Company does not individually have the power to direct the activities that are most significant to the entity and, accordingly, this investment is not consolidated. The Company's maximum exposure to loss associated with this VIE is limited to the Company's outstanding note receivable in the amount of $6.9 million, which is fully reserved in the allowance for credit losses at March 31, 2025.The following summarizes the activity within the allowance for credit losses related to mortgage notes, unfunded commitments and notes receivable for the three months ended March 31, 2025 (in thousands):Mortgage notes receivableUnfunded commitments - mortgage notes receivableNotes receivableUnfunded commitments - notes receivableTotalAllowance for credit losses at December 31, 2024$17,111 $740 $8,811 $— $26,662 Provision (benefit) for credit losses, net(432)(217)(3)— (652)Charge-offs(10,420)— (1,916)— (12,336)Recoveries— — — — — Allowance for credit losses at March 31, 2025$6,259 $523 $6,892 $— $13,674 

6.  Accounts Receivable

The following table summarizes the carrying amounts of accounts rece