Company: EPR-PE
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001045450-25-000082
Chunk: 43

Company: EPR PROPERTIES
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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2025, unamortized share-based compensation expense related to nonvested performance share units was $10.7 million.Restricted Share UnitsA summary of the Company’s restricted share unit activity and related information is as follows:Number of sharesWeighted avg. grant date fair valueWeighted avg. life remainingOutstanding at December 31, 202445,410 $40.69 Granted1,564 47.67 Vested— — Outstanding at March 31, 202546,974 $40.92 0.17The holders of restricted share units receive dividend equivalents from the date of grant. Total expense recognized related to shares issued to non-employee Trustees and included in "General and administrative expense" in the accompanying consolidated statements of income and comprehensive income was $0.5 million and $0.4 million for the three months ended March 31, 2025 and 2024, respectively. At March 31, 2025, unamortized share-based compensation expense related to restricted share units was $0.3 million.

12.  Operating Leases

The Company’s real estate investments are leased under operating leases. In addition to its lessor arrangements on its real estate investments, as of March 31, 2025 and December 31, 2024, the Company was lessee in 51 operating 

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ground leases and lessee in one operating lease for its executive office. The Company's tenants, who are generally subtenants under these ground leases, are responsible for paying the rent under these ground leases. As of March 31, 2025, rental revenue from one of the Company's tenants, who is also a subtenant under certain ground leases, is being recognized on a cash basis. In addition, two of the Company's ground leases do not currently have subtenants. In the event the tenant fails to pay the ground lease rent or if the property does not have a subtenant, the Company is primarily responsible for the payment, assuming the Company does not sell or re-tenant the property. The following table summarizes rental revenue, including sublease arrangements and lease costs, for the three months ended March 31, 2025 and 2024 (in thousands):Three Months Ended March 31,Classification20252024Lease revenueOperating leasesRental revenue$139,779 $135,794 Sublease income - operating ground leasesRental revenue6,580 6,487