Company: EPR-PE
Filing Date: 2025-06-03
Form Type: S-3ASR
Source: 0001193125-25-134116
Chunk: 31

Company: EPR PROPERTIES
Filing Date: 2025-06-03
Form: S-3ASR
Chunk 31
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 section to be inaccurate. No assurance can be given that the IRS would not assert, or that a court would not sustain, a position contrary to any of the
tax consequences described below. We have not received nor do we intend to seek a private letter ruling from the IRS regarding the Plan. Moreover, this summary does not address the tax implications of your ownership of common shares of a REIT,
including the effect of distributions made in respect of such shares. In addition to reading the following summary, please also review “U.S. Federal Income Tax Considerations,” for a summary of federal income tax considerations related to
the ownership of our common shares acquired under the Plan.

Character of Distributions.

Our distributions to shareholders constitute dividends for federal income tax purposes up to the amount of our positive current and accumulated
earnings and profits and, to that extent, will be taxable as ordinary income (except to the extent that we designate any portion of such dividend as a “capital gain” dividend or, in the case of shareholders taxed at individual rates who
satisfy certain holding period requirements, to the extent any portion of such dividend is attributable to dividends received by us from non-REIT corporations or taxable REIT subsidiaries). To the extent that
we make distributions (not designated as capital gain dividends) in excess of our current and accumulated earnings and profits, the distribution will be treated first as a tax-free return of capital to the
extent of your tax basis in our common shares and, to the extent in excess of your tax basis, will be taxable as a gain realized from the sale of your common shares. Distributions to corporate shareholders, including amounts taxable as dividends to
corporate shareholders, will not be eligible for the corporate dividends-received deduction.

Because we generally are not subject to
federal income tax on the portion of our REIT taxable income distributed to our shareholders, our ordinary dividends generally are not “qualified dividend income” eligible for the reduced 15% or 20% rates (depending on the
shareholder’s marginal U.S. federal income tax rate) available to most non-corporate taxpayers, and will continue to be taxed at the higher tax rates applicable to ordinary income. However, for taxable
years prior to 2026, individual shareholders are generally allowed to deduct 20% of the aggregate amount of ordinary dividends distributed by us, subject to certain limitations, which will reduce the maximum marginal effective tax rate for
individuals on the receipt of such ordinary dividends to 29.6%. Without further legislation