Company: EPR-PE
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001045450-25-000051
Chunk: 147

Company: EPR PROPERTIES
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 147
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 Financial StatementsDecember 31, 2024, 2023 and 2022

$11.3 million subordinated mortgage note receivable to the joint venture. On February 4, 2025, the Company received $1.0 million in exchange for the sale of its remaining subordinated mortgage note receivable. Accordingly, during the fourth quarter of 2024, the Company recognized $10.3 million as a provision for credit loss. See Note 8 for further details on this mortgage note receivable. Investment in notes receivable, including related accrued interest receivable, was $3.3 million and $3.9 million at December 31, 2024 and 2023, respectively, and is included in "Other assets" in the accompanying consolidated balance sheets. At December 31, 2024, two of the Company's mortgage notes receivable and two of the Company's notes receivable are considered collateral-dependent. Expected credit losses are based on the fair value of the underlying collateral with the credit allowance being the difference between the outstanding principal balance of the notes and the estimated fair value at the reporting date. The Company assessed the fair value of the collateral as of December 31, 2024 on the mortgage notes receivable and the notes receivable. One mortgage note receivable has a carrying amount at December 31, 2024 of approximately $10.4 million net of an allowance for credit loss totaling $0.4 million. One mortgage note receivable has a carrying amount at December 31, 2024 of approximately $1.0 million net of an allowance for credit loss totaling $10.3 million. This mortgage note receivable became collateral dependent during the three months ended December 31, 2024 and is a subordinated loan due from an unconsolidated real estate joint venture. See Note 8 for more details. The two notes receivable remain fully reserved with an allowance for credit loss totaling $6.9 million and $1.9 million, respectively, which represents the outstanding principal balances of the notes as of December 31, 2024. Income from these borrowers is recognized on a cash basis. During the years ended December 31, 2024 and 2023, the Company received cash basis interest payments of $0.9 million for each period from the mortgage note receivable borrower and $0.7 million for each period from one of the note receivable borrowers.