Company: EPR-PE
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001045450-25-000082
Chunk: 37

Company: EPR PROPERTIES
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 37
---
 by the Company to estimate the fair value of each class of financial instruments at March 31, 2025 and December 31, 2024: Mortgage notes receivable and related accrued interest receivable, net:The fair value of the Company’s mortgage notes and related accrued interest receivable, net, is estimated by discounting the future cash flows of each instrument using current market rates. At March 31, 2025, the Company had a carrying value of $659.0 million in fixed-rate mortgage notes receivable outstanding, including related accrued interest and allowance for credit losses, with a weighted average interest rate of approximately 8.91%. The fixed-rate mortgage notes bear interest at rates of 7.15% to 12.50%. Discounting the future cash flows for fixed-rate mortgage notes receivable using estimated market rates of 7.35% to 11.00%, management estimates the fair value of the fixed-rate mortgage notes receivable to be approximately $698.6 million with an estimated weighted average market rate of 8.09% at March 31, 2025.At December 31, 2024, the Company had a carrying value of $665.8 million in fixed-rate mortgage notes receivable outstanding, including related accrued interest and allowance for credit losses, with a weighted average interest rate of approximately 8.88%. The fixed-rate mortgage notes bear interest at rates of 7.15% to 12.50%. Discounting the future cash flows for fixed-rate mortgage notes receivable using estimated market rates of 7.45% to 10.00%, management estimates the fair value of the fixed-rate mortgage notes receivable to be $701.7 million with an estimated weighted average market rate of 8.08% at December 31, 2024.

14

Derivative instruments:Derivative instruments are carried at their fair value.Debt instruments:The fair value of the Company's debt is estimated by discounting the future cash flows of each instrument using current market rates. At March 31, 2025, the Company had a carrying value of $130.0 million in variable-rate debt outstanding with an average interest rate of approximately 5.26%. The carrying value of the variable-rate debt outstanding approximated the fair value at March 31, 2025.At December 31, 2024, the Company had a carrying value of $200.0 million in variable-rate debt outstanding with an interest rate of approximately 5.34%. The carrying