Company: EPR-PE
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001045450-25-000135
Chunk: 31

Company: EPR PROPERTIES
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 operations and major decisions.The Company's variable interests in VIEs currently are in the form of equity ownership and loans provided by the Company to a VIE. The Company examines specific criteria and uses its judgment when determining if the Company is the primary beneficiary of a VIE. The primary beneficiary generally is defined as the party with the controlling financial interest. Consideration of various factors include, but are not limited to, the Company’s ability to direct the activities that most significantly impact the entity’s economic performance and its obligation to absorb losses from or right to receive benefits of the VIE that could potentially be significant to the VIE. As of September 30, 2025 and December 31, 2024, the Company does not have any investments in consolidated VIEs. Deferred Financing CostsDeferred financing costs are amortized over the terms of the related debt obligations, as applicable. Deferred financing costs of $15.2 million and $19.1 million as of September 30, 2025 and December 31, 2024, respectively, are shown as a reduction of "Debt" in the accompanying consolidated balance sheets. The deferred financing costs related to the unsecured revolving credit facility of $8.4 million and $10.5 million as of September 30, 2025 and December 31, 2024, respectively, are included in "Other assets" in the accompanying consolidated balance sheets. Rental Revenue The Company leases real estate to its tenants under leases classified as operating leases. The Company's leases generally provide for rent escalations throughout the lease terms. Rents that are fixed are recognized on a straight-line basis over the lease term. Base rent escalations that include a variable component are recognized upon the 

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occurrence of the specified event as defined in the Company's lease agreements. Many of the Company's leasing arrangements include options to extend the lease, which are not included in the minimum lease terms unless the option is reasonably certain to be exercised. Straight-line rental revenue is subject to an evaluation for collectability, and the Company records a direct write-off against rental revenue if collectability of these future rents is not probable. During the nine months ended September 30, 2025 and 2024, the Company recognized straight-line write-offs of $0.1 million for both periods. For the nine months ended September 30, 2025 and 2024, the Company recognized $12.1 million and $13.3 million, respectively, of straight-line rental revenue