Company: EPR-PE
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001045450-25-000120
Chunk: 32

Company: EPR PROPERTIES
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 in "Other assets" in the accompanying consolidated balance sheets. During the six months ended June 30, 2025, the Company received $8.1 million in net proceeds representing prepayment in full on two mortgage note receivables that were secured by two early childhood education center properties in Florida. During the year ended December 31, 2024, the Company made the decision to exit its unconsolidated equity investment in an operating RV property located in Breaux Bridge, Louisiana. The Company had previously provided an $11.3 million subordinated mortgage note receivable to the unconsolidated real estate joint venture holding the property. During the year ended December 31, 2024, the Company recorded an allowance for credit loss totaling $10.3 million for this mortgage note receivable. On February 4, 2025, the Company received $1.0 million in exchange for the sale of its remaining subordinated mortgage note receivable and accordingly reduced the allowance 

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for credit loss by the $10.3 million of principal that was forgiven. Additionally, during the six months ended June 30, 2025, the Company wrote-off $1.9 million of principal for a note receivable that was fully reserved. At June 30, 2025, one of the Company's mortgage notes receivable and one of the Company's notes receivable are considered collateral-dependent and 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 June 30, 2025 on the mortgage note receivable and the note receivable. The mortgage note receivable has a carrying amount at June 30, 2025 of approximately $10.4 million net of an allowance for credit loss totaling $0.4 million. The one note receivable is fully reserved with an allowance for credit loss totaling $6.9 million, which represents the outstanding principal balance of the note as of June 30, 2025. Income from these borrowers is recognized on a cash basis. During the six months ended June 30, 2025 and 2024, the Company received cash basis interest payments of $0.6 million and $0.4 million, respectively, from the mortgage note receivable borrower and $0.4 million for each period