Company: EPR-PE
Filing Date: 2025-06-03
Form Type: S-3ASR
Source: 0001193125-25-134116
Chunk: 73

Company: EPR PROPERTIES
Filing Date: 2025-06-03
Form: S-3ASR
Chunk 73
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75% gross income test, we intend to make an election to treat the related property as foreclosure
property.

49

Penalty Tax Any redetermined rents, redetermined deductions or excess interest we generate will be subject to a 100% penalty tax. In general, redetermined rents are rents from real property that are overstated as a result of any services furnished to any of our tenants by one of our TRSs, and redetermined deductions and excess interest generally represent any amounts that are deducted by a TRS for amounts paid to us that are in excess of the amounts that would have been deducted based on arm’s-lengthnegotiations. Rents we receive will not constitute redetermined rents if they qualify for certain safe harbor provisions contained in the Code. We believe that all fees paid to our TRSs for tenant services are at arm’s-lengthrates, although the fees may not satisfy the safe harbor provisions referenced above. These determinations are inherently factual, and the IRS has broad discretion to assert that amounts paid between related parties should be reallocated to clearly reflect their respective incomes. If the IRS successfully makes such an assertion, we would be required to pay a 100% penalty tax on the excess of an arm’s-lengthfee for tenant services over the amount actually paid. Annual Distribution Requirements To maintain our qualification as a REIT, we are required to distribute dividends (other than capital gain dividends) to our shareholders each year in an amount at least equal to:

| (A) | the sum of |

| (i) | 90% of our “REIT taxable income” (computed before deductions for dividends paid and excluding net 
 capital gain) and                                                                                 |

| (ii) | 90% of our net income (after tax), if any, from foreclosure property; minus |

| (B) | the excess of the sum of certain items of noncash income (i.e., income attributable to leveled stepped rents,                                                                                     
 original issue discount on purchase money debt, cancellation of indebtedness or a like-kind exchange that is later determined to be taxable) over 5% of “REIT taxable income” as described above. |

In addition, if we dispose of any asset we acquired from a corporation which is or has been a Subchapter C corporation in a transaction in which our tax basis in the asset is determined by reference to the tax basis of the asset in the hands of that Subchapter C corporation, within the five-year period following our acquisition of such asset, we would be required to distribute at least 90