Company: EPR-PE
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001045450-25-000135
Chunk: 37

Company: EPR PROPERTIES
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 of the note as of September 30, 2025. The other collateral-dependent mortgage note receivable has a carrying amount at September 30, 2025 of approximately $10.4 million net of an allowance for credit loss totaling $0.4 million. Income from these borrowers is recognized on a cash basis. During the nine months ended September 30, 2025 and 2024, the Company received cash basis interest payments of $0.9 million and $0.7 million, respectively, from these mortgage note receivable borrowers. At September 30, 2025, one of the Company's notes receivable is considered collateral-dependent. The Company assessed the fair value of the collateral as of September 30, 2025 on the note receivable. The note receivable is fully reserved with an allowance for credit loss totaling $6.0 million, which represents the outstanding principal balance of the note as of September 30, 2025. At September 30, 2025, the Company's investment in this note receivable was a variable interest investment and the underlying entity is a VIE. The Company is not the primary beneficiary of this VIE because the Company does not individually have the power to direct the activities that are most significant to the entity and, accordingly, this investment is not consolidated. The Company's maximum exposure to loss associated with this VIE is limited to the Company's outstanding note receivable in the amount of $6.0 million, which is fully reserved in the allowance for credit losses at September 30, 2025. The Company's income received from this borrower is recognized on a cash basis. During the nine months ended September 30, 2025 and 2024, the Company received cash basis interest payments of $0.6 million and $0.7 million, respectively. During the nine months ended September 30, 2025 and 2024, the Company received principal payments totaling $0.8 million for each period from this borrower. Additionally, during the nine months ended September 30, 2025, the Company wrote-off $1.9 million of principal for a note receivable that was fully reserved. The following summarizes the activity within the allowance for credit losses related to mortgage notes, unfunded commitments and notes receivable for the nine months ended September 30, 2025 (in thousands):Mortgage notes receivableUnfunded commitments - mortgage notes receivableNotes rece