Company: EPR-PE
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001045450-25-000051
Chunk: 173

Company: EPR PROPERTIES
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 173
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 shares and 49,574 common shares from dividend equivalents. The fair value of the performance share units and dividend equivalents that vested was $12.6 million. The number of common shares issuable upon settlement of the performance share units granted during the years ended December 31, 2024, 2023 and 2022 will be based upon the Company's achievement level relative to the following performance measures over a three-year performance period ending December 31, 2026, 2025 and 2024, respectively. The Company's achievement level relative to the performance measures is assigned a specific payout percentage which is multiplied by the target number of performance share units. Granted during the years ended December 31,TSR vs. Triple-Net Peer GroupTSR vs. MSCI US REIT IndexCAGR in AFFO per share growth202250.0 %25.0 %25.0 %202350.0 %25.0 %25.0 %202452.2 %26.1 %21.7 %The performance share units based on relative TSR performance have market conditions and are valued using a Monte Carlo simulation model on the grant date, which resulted in a grant date fair value of approximately $4.1 million, $5.9 million and $6.0 million for the years ended December 31, 2024, 2023 and 2022, respectively. The estimated fair value is amortized to expense over the three-year vesting period, which ends on December 31, 2026, 2025 and 2024 for performance share units granted in 2024, 2023 and 2022, 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 years ended December 31, 2024, 2023 and 2022, respectively: risk-free interest rate of 4.5%, 4.4% and 1.7%, volatility factors in the expected market price of the Company's common shares of 30%, 52% and 71% 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