Company: EPR-PE
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001045450-25-000120
Chunk: 37

Company: EPR PROPERTIES
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 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 June 30, 2025, the Company estimates that during the twelve months ending June 30, 2026, $7 thousand of losses will be reclassified from AOCI to other income.Net Investment HedgesThe Company is exposed to fluctuations in the USD-CAD exchange rate on its net investments in Canada. As such, the Company uses currency forward agreements to manage its exposure to changes in foreign exchange rates on certain of its foreign net investments. As of June 30, 2025, the Company had the following foreign currency forwards designated as net investment hedges:Fixed rateNotional Amount (in millions, CAD)Maturity$1.40 CAD per USD$200.0 December 1, 2026$1.40 CAD per USD90.0 December 1, 2026Total$290.0 

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For qualifying foreign currency derivatives designated as net investment hedges, the change in the fair value of the derivatives is reported in AOCI as part of the cumulative translation adjustment. Amounts are reclassified out of AOCI into earnings when the hedged net investment is either sold or substantially liquidated. Gains and losses on the derivative representing hedge components excluded from the assessment of effectiveness are recognized over the life of the hedge on a systematic and rational basis, as documented at hedge inception in accordance with the Company's accounting policy election.Below is a summary of the effect of derivative instruments on the consolidated statements of changes in equity and income for the three and six months ended June 30, 2025 and 2024.Effect of Derivative Instruments on the Consolidated Statements of Changes in Equity and Comprehensive Income for the Three Months and Six Months Ended June 30, 2025 and 2024 (Dollars in thousands) Three Months Ended June 30,Six Months Ended June 30,Description2025202420252024Cash Flow HedgesInterest Rate SwapsAmount of Gain Recognized in AOCI on Derivative$108 $37 $128 $371 Amount of Income Reclassified from AOCI into Earnings (1)120 179 240 362 Cross-Currency SwapsAmount of (Loss) Gain Recognized in AOCI on Derivative (1,268)112 (1,200)454 Amount of Income Reclass