Company: EPR-PE
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001045450-25-000135
Chunk: 51

Company: EPR PROPERTIES
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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, 2025 and 2024, respectively. The estimated fair value is amortized to expense over the three-year performance periods, which end on December 31, 2027, 2026 and 2025 for performance share units granted in 2025, 2024 and 2023, respectively. The following assumptions were used in the Monte Carlo simulation for computing the grant date fair value of the performance share units with a market condition for the nine months ended September 30, 2025: risk-free interest rate of 4.2%, volatility factors in the expected market price of the Company's common shares of 25% and an expected life of approximately three years. The performance share units based on growth in AFFO per share have a performance condition. The probability of achieving the performance condition is assessed at each reporting period. If it is deemed probable that the performance condition will be met, compensation cost will be recognized based on the closing price per share of the Company's common stock on the date of the grant multiplied by the number of awards expected to be earned. If it is deemed that it is not probable that the performance condition will be met, the Company will discontinue the 

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recognition of compensation cost and any compensation cost previously recorded will be reversed. At September 30, 2025, achievement of the performance condition was deemed probable for the performance share units granted during the nine months ended September 30, 2025 with an expected payout percentage of 165%, which resulted in a grant date fair value of approximately $2.0 million. Achievement of the performance condition for the performance share units granted during the nine months ended September 30, 2024 and 2023 was deemed not probable at September 30, 2025. Expense recognized related to performance share units and included in "General and administrative expense" in the accompanying consolidated statements of income and comprehensive income was $4.2 million and $4.0 million for the nine months ended September 30, 2025 and 2024, respectively. Expense related to performance share units and included in retirement and severance expense in the accompanying consolidated statements of income and comprehensive income was $0.4 million and $0.9 million for the nine months ended September 30, 2025 and 2024, respectively. At September 30, 2025, unamortized share-based compensation expense related to nonvested performance share units was $8.1 million.Restricted Share Units