Company: EPR-PE
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001045450-25-000135
Chunk: 41

Company: EPR PROPERTIES
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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 the twelve months ending September 30, 2026, $71 thousand of losses will be reclassified from AOCI to interest expense.Cash Flow Hedges of Foreign Exchange RiskThe Company is exposed to foreign currency exchange risk against its functional currency, USD, on CAD denominated cash flow from its six Canadian properties. The Company uses cross-currency swaps to mitigate its exposure to fluctuations in the USD-CAD exchange rate on cash inflows associated with these properties, which should hedge a significant portion of the Company's expected CAD denominated cash flows. As of September 30, 2025, the Company had the following cross-currency swaps: 

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Fixed rateNotional Amount (in millions, CAD)Annual Cash Flow (in millions, CAD)Maturity$1.35 CAD per USD$170.0 $15.3 December 1, 2026$1.35 CAD per USD90.0 8.1 December 1, 2026$260.0 $23.4 The change in the fair value of foreign currency derivatives designated and that qualify as cash flow hedges of foreign exchange risk is recorded in AOCI and reclassified into earnings in the period that the hedged forecasted transaction affects earnings within the same income statement line item as the earnings effect of the hedged transaction. As of September 30, 2025, the Company estimates that during the twelve months ending September 30, 2026, $343 thousand of gains will be reclassified from AOCI to other income.Fair Value Hedges of Foreign Exchange Risk During the nine months ended September 30, 2025, the Company entered into a CAD denominated mortgage note receivable secured by a fitness & wellness property in Winnipeg, Canada. The Company uses cross-currency swaps designated as a fair value hedge to mitigate foreign currency risk associated with fluctuations in the USD-CAD spot rate associated with the principal remeasurement of this mortgage note. The Company entered into a cross-currency swap with an interim and final notional exchange of $27.9 million CAD and $20.0 million USD at a spot rate of $1.392 CAD per USD to fund the principal amount of the mortgage note receivable and monthly exchanges as noted below. As of September 30, 2025, the Company had the following cross-currency swap designated as a fair value hedge: Interim settlement exchange rateNotional Amount (in millions, CAD)Annual Cash Flow (in millions, CAD